Committee of Supply – Head S (Ministry of Manpower)

1.47 pm

Accessing Skilled Foreign Workers

Ms Yeo Wan Ling (Punggol): Mr Chairman, I move, "That the total sum to be allocated for Head S of the Estimates be reduced by $100."

Singapore is going through a period of profound labour change. We are seeing the effects of an aging demographic and our total fertility rate is at a historical low. More workers today are also caregivers and women, who traditionally take up caregiving roles, continue to face the balancing act between work and caregiving. At the same time, our enterprises are navigating an uncertain global environment marked by higher costs and rising trade barriers. Alongside these changes, more Singaporeans are choosing platform work as a livelihood of choice, whether for flexibility, autonomy or income stability. And layered onto all of these is the advent of artificial intelligence (AI), which is already beginning to transform the very nature of work.

Not just the jobs we do, but how work is organised, how skills are built and how careers evolve. Against this backdrop, Singapore's manpower policies must not only balance global talent attraction with local workforce protection, but must actively enable Singaporeans to thrive as workplaces evolve.

In the last term of Government, the Ministry of Manpower (MOM) and our tripartite partners worked together to guide our workforce out of the COVID-19 crisis and enabled workers to benefit from the recovery. We secured better terms for lower-wage workers as well as platform workers, improved caregivers' access to flexible work arrangements and took early steps to prepare for a super-aged society. But as this new term begins, our labour and industry transformation policies face a far more complex task.

AI is a gamechanger. It can augment workers or displace them, depending on how work and jobs are redesigned. The key question is not whether transformation will happen. It is whether it will translate into stronger wages, deeper skills and better career pathways for Singaporeans.

Our first Industry Transformation Maps (ITMs) were introduced in 2016. They were forward-looking then. But AI is reshaping industries at a speed that demands sharper, more dynamic responses. While some ITMs have been refreshed and augmented with Job Transformation Maps, we must now ensure they provide clear direction on: AI-driven business process redesign, timelines for workforce transition and credible pathways into new roles when existing ones are sunsetted.

Equally important, we must ensure that employers bring their workforce along this journey. Displacement must remain the last resort. As industries transform, workplaces must become more inclusive and supportive, particularly for mid-career workers and those with caregiving responsibilities.

While we have made meaningful progress and strengthening protections for platform workers in both livelihood stability and recent workplace safeguards, platform work remains inherently precarious. Recent platform exits remind us that workers remain vulnerable to sudden business decisions. At the same time, road safety is an increasing concern. The rise and group fatalities and injuries reported in 2025 underscores the risk that platform workers face daily.

We need to move beyond baseline protections. As more Singaporeans rely on platform work as a primary livelihood, we must guard against platform consolidation creating a race to the bottom in payouts and incentives. When platform exit, workers should not be left exposed to delayed or unpaid dues. Stronger safeguards are needed to ensure timely notice fulfilment of payment obligations and clear records, whether defaults occur while also strengthening protections for their safety on the roads. Tripartism must continue to anchor this effort. The Platform Workers Trilateral Group demonstrated in 2025 how effective collaboration can address complex challenges, such as illegal platform work.

Going forward, platform worker associations should and must remain a central pillar, strengthening partnerships to improve both livelihood resilience and safety outcomes for our platform workers. Today, my Government Parliamentary Committee (GPC) colleagues and fellow labour Members of Parliament (MPs) will share our views on how manpower policies must continue to secure good jobs for our Singaporean core, while powering economic progress within this land and infrastructural constraints of our little red dot. Because of this remains a delicate but necessary balancing act.

We must enable time-crunched mid-career workers to upskill; without placing unsustainable pressure on employers in a tight labour market. We must provide assurance to IHL students entering a workforce where entry-level roles are evolving. We must ensure local-foreign workforce complementarity remains responsive, without compromising business agility. And we must strengthen income security, as workforce churn rises, skills half-lives shorten, caregiving burdens grow and cost pressures persist.

There are limits to how much we can expand our foreign workforce, given infrastructure constraints and our social capacity. Our manpower strategy must therefore focus on transformation, not substitution. Firms must become less manpower-reliant even as they become more productive. And our local workforce must move up the skills ladder alongside industry transformations.

In this new phase of labour transformation, I would like to put forward three Budget priorities.

First, we must continue attracting top global talent in a way that strengthens, not substitutes our Singaporean core. This requires stronger complementarity frameworks, clearer skills transfer expectations and leadership pathways for our locals.

Second, as businesses face tighter margins, we must support transformation, not dependency on manpower expansion. Foreign manpower must be calibrated alongside deeper industry upgrading so that productivity, not labour cost suppression, drives competitiveness.

Third, productivity gains must translate into real wage uplift, especially for lower-wage and at-risk workers. Job redesign and AI adoption must be linked directly to wage progression, so transformation narrows inequality rather than widens it because ultimately, every worker matters.

Question proposed.

The Chairman: Ms Yeo Wan Ling.

Quality and Productivity of Foreign Workforce

Ms Yeo Wan Ling: Mr Chairman, our approach to foreign manpower must go beyond access. Their deployment must drive productivity and translate into better jobs and stronger wage outcomes for Singaporeans.

I note the Ministry's intention to add eight occupations from the social services, food services and transportation sectors to the Non-traditional Sources Occupation List (NTS-OL) in 2026. The NTS-OL is an important tool to address manpower shortages in critical roles. But as we expand it, we must ensure that access to foreign manpower does not simply relieve short-term labour gaps.

It must actively support upgrading and reframing of jobs are they transform with AI and technology into attractive jobs for Singaporeans. I therefore call on the Ministry to accompany this expansion with clear productivity-linked conditions.

Firms that access NTS-OL manpower should also commit to structured training for locals, skills transfer from foreign workers and job redesign that improves work processes. Where appropriate, access to NTS-OL manpower should be tied to demonstrable workforce upgrading plans, including career pathways for Singaporeans and measurable productivity improvements.

Second, we should ensure that expansion does not suppress wage growth for vulnerable local workers. The Budget should support firms in redesigning jobs alongside workforce diversification so that productivity gains translate into higher wages, not simply labour cost substitutions.

Finally, we must ensure that our workforce diversification strengthens the Singaporean core. This means embedding progression pathways, leadership pipelines and skills upgrading for locals into sectors where NTS-OL access is expanded. Foreign manpower must complement transformation, not replace it. If done right, this expansion can raise productivity across the workforce and support sustainable growth that delivers better wages and good jobs for all Singaporeans.

Review of Employment Act

Mr Pritam Singh (Aljunied): The Employment Act was last reviewed in 2018. That review coincided with the act's 50th anniversary.

One of its more far-reaching amendments was to extend the Act's protections to 430,000 more workers, comprising managers and executives. It follows that the broadening of coverage makes the current review of the Employment Act more significant than previous iterations. It was first announced at the Committee of Supply last year when MOM announced its plans to review the act.

Almost immediately, the Singapore National Employers Federation moved quickly to caveat that the review should not, and I quote, "inadvertently mandate progressive employment practices that may reduce flexibilities for employers and undermine business competitiveness". There have been little further announcements on the areas under review beyond the broad objectives which were announced when the Tripartite Workgroup first met in August last year. There has been some speculation of specific enhancements, including raising the minimum statutory annual leave entitlement.

According to MOM, 2022, more than 90% of full-time resident employees between the age of 25 and 64 already received more than the statutory minimum seven days leave. Any increase through proposed amendments to the act here would be akin to pushing against an open door if proposed amendments substantively amount to what is a common market practice.

Can the Minister share what deliberations have taken place thus far, and if there has been a significant gap in positions between the Ministry, the unions and employer organisations like the Singapore National Employers Federation (SNEF)? What areas of amendment have been scuttled or deferred to date in view of divergences in position? Will the Ministry consider a public consultation in parallel with tripartite negotiations, given the significantly larger number of workers covered by the Employment Act today?

Moving forward, the Government should review its tripartite posture to lean on the side of workers more, particularly in today's employment landscape. As the Prime Minister observed in this year's Budget speech, we must always take care of our own.

One long-standing anomaly in the Act is the distinction between workmen and non-workmen, a distinction that has arguably blurred in today's environment of AI skills upgrading and job convergence. Are there plans to achieve parity with regard to salary thresholds for workmen and non-workmen alike?

In addition, both the Act and the tripartite guidelines envisage the payment of retrenchment benefits. Previous MOM surveys indicate that in general, a very large number of companies, around 90%, are already able to pay retrenchment benefits to the level of the tripartite guidelines.

The time has come for these guidelines to be legislated as a norm in an advanced economy like Singapore, as a manifestation of a basic Singapore standard for all workers. Larger companies, those with more than 25 workers, should be expected to pay more at minimum, one month for every year of service, which is the norm for unionised companies.

Based on MOM's own data on retrenchments, legislating for a reasonable quantum of retrenchment benefits that are already the overwhelming norm in Singapore would not be an earth-shattering legislative development. However, doing so would be consistent with the objective of commitments like #Every Worker Matters and a "we first" society. Can MOM confirm if retrenchment benefits are a subject under discussion as part of the current review under the Act?

The Chairman: Mr Patrick Tay, you may take your three cuts together.

Mr Patrick Tay Teck Guan (Pioneer): The last round of Employment Act review was passed in 2018 and effective April 2019. I am aware that the review is ongoing and I declare my interest as part of the tripartite workgroup on the review.

I am therefore asking for MOM now to provide an update to the House on when they plan to roll out the amendments and in what broad areas, pursuant to some of my lobbying efforts in this House the past few years.

By the same token, the Industrial Relations Act was last amended more than a decade ago, in 2015. To avoid conflicts of interest and undermining management effectiveness, executives with senior management functions were excluded from collective bargaining.

In the years that followed, unions which have sought to extend their scope of representation to include executives and have met with some difficulties because the exclusions set out in section 17(3) are too broadly worded, thereby giving employers the opportunity to claim that even low- and mid-level executive employees fall within them, whereas the intent behind the law was only to exclude those who are at senior management levels and carry out functions which genuinely give rise to a conflict of interest if they are represented by a union.

Can I request MOM to look into providing greater clarity through a firmer and clearer articulation on this point, either through amending the guidelines or amending the Industrial Relations Act for statutory clarity?

2.00 pm

Guidelines on Restraint of Trade

I would like to ask the Ministry also for an update on the proposed tripartite guidelines on the restraint of trade clauses.

More than two years ago, MOM announced that these guidelines were being developed in consultation with tripartite partners, with the intention to provide clearer guidance to employers and better protection for employees. At that point, we were told that the guidelines were expected to be released by the end of 2024.

We are now in 2026. Yet, many employees, especially professionals, managers and executives (PMEs), continue to face broad and restrictive restraint of trade clauses that can limit their mobility, bargaining power and career progression, even where there is no legitimate business interest to protect.

Could the Minister update this House on the current status of this and indicate when employers and workers can expect clear and practical guidance to be issued? And in the interim, what advice does MOM have for employees who may be subject to overly restrictive or unreasonable restraint of trade clauses today?

Unemployment Support and Mandatory Retrenchment Notification

Over the decades, in my work with the Labour Movement, I have worked alongside thousands of workers who lost their jobs, sometimes with notice, sometimes overnight, often with little clarity on what comes next. Retrenchment is not just an economic event. It is a human event, affecting livelihoods, families and dignity.

I would like to ask the Ministry for an update on two key safeguards that directly impact displaced workers: the SkillsFuture Jobseeker Support Scheme and the Mandatory Retrenchment Notification framework.

First, on the SkillsFuture Jobseeker Support Scheme. Since the start of the scheme, can MOM provide an update on the scheme? Today, we see more PMEs affected by involuntary unemployment than before and further exacerbated by the advent of GenAI. I strongly urge MOM to consider expanding the Jobseeker Support Scheme (JSS) cap from the current $5,000 to $7,600, which is the median salary of professionals, managers, executives and technicians (PMETs), and I am speaking of PMETs and not even PMEs, which is much higher, so that the scheme remains meaningful, adequate and reflective of present‑day labour market realities?

Second, on Mandatory Retrenchment Notification. Today, notification often comes after retrenchment decisions have been finalised. By then, options are limited and intervention is reactive. I propose that the notice be done prior to retrenchment, so that early support can be activated, such as career coaching, job matching, redeployment, and where possible, alternatives to retrenchment itself. Early notification enables early intervention and early intervention saves jobs.

Access to Premium AI Tools

Assoc Prof Terence Ho (Nominated Member): Mr Chairman, I would like to suggest that the Ministry consider extending free or subsidised access to AI premium tools to a larger group of Singaporeans, such as all mature workers, on a time-limited basis.

Many of these premium tools cost no more than US$20 a month, or under $30 a month. Six months of fully or partly subsidised access, could make a significant difference in helping people become familiar with and experiment with AI. In particular, the fear of missing out could prompt people to try the tools for the first time, which they may put off despite the availability of free versions. Many of these tools are intuitive and can be adopted even without special training.

Given the potential for an AI divide where the affluent and less well-off have differential access to premium AI tools, a further suggestion is to offer lower-income Singaporeans subsidised access to premium AI tools on a longer-term basis. This would help ensure that AI adoption remains inclusive and does not widen existing inequalities.

On-the-job Training in the Age of AI

Assoc Prof Jamus Jerome Lim (Sengkang): One of my closest friends, whom I have known since I was 13, is a banker. This in and of itself is unremarkable, since the financial sector accounts for one in every 16 workers in our labour force. What is remarkable, however, is how he got there. My mate, trained in architecture, obtaining his bachelor's and master's degrees in the subject, but after graduation, he applied for and scored his first job in investment banking. Why did the bank bother interviewing him to begin with?

According to him, they were impressed by his sharpness and moxie. There was a reason that they would teach him everything that he would need to know on the job anyhow. Today, he an immensely successful financier leading the Asia Pacific business of a top-shelf asset management firm.

The story illustrates a reality that all of us are familiar with. In spite of the best efforts of educators, like myself, most of the skills needed for our jobs are not learnt in the classroom but in life settings on-the-job training (OJT)

Indeed, OJT, which could involve formally organised structures, such as apprenticeships or internships, or more informal processes, such as guidance and mentorship, often imparts specialised skills that are typically far more valuable for the actual day-to-day performance of one's job than the validation conferred by a certification itself.

Today, countries as diverse as Australia, France, Germany, India, Switzerland and Turkey, have national-level apprenticeship systems. Singapore has OJT systems too but there are certain shortcomings.

The Workforce Skills Qualification (WSQ) framework under the rubric of SkillsFuture includes an assessment only pathway (AOP). But by emphasising paper qualifications, the AOP continues to be hamstrung by an insistence on assessment over demonstration, on the acquisition of certification over experience. Those I have spoken to shared that it has become more of an impediment rather than a genuine stepping stone toward career advancement in the skills trades.

Workforce Singapore (WSG) runs existing Career Conversion Programmes (CCPs), but these are mostly linked to industry transformation maps. In practice, the industries covered are linked, limited to professional and technical roles rather than broad based.

WSG also runs a career trial for employers where firms can try the employee out for some time with Government support. This helps spread the risk for employers in terms of hiring. But it is less clear how trainees, especially those who are seeking to retrain and reskill, gain structured systematic exposure to new skills.

Most recently, WSG launched the GRaduate in Industry Traineeship (GRIT) programme for graduates of ITE, polytechnics and universities. This is a major step and one that I wholeheartedly support. But a quick search reveals less than 100 open positions.

Prime Minister Lawrence Wong, in his National Day Rally, announcing the initiative, spoke about scaling up the programme if the economy worsens. While the economy is doing well, I believe that GRIT's time has come.

Agentic AI threatens to replace the need for entry-level positions. Yet, without a pipeline to train new hires, especially on the job, it will be a conundrum, a shortage of experienced mid-level workers which remain in high demand. This is precisely where the Government can step in by subsidising the gap that the labour market would otherwise leave unfulfilled. I propose that we institutionalise a national OJT system for apprenticeships, internships and mentorships.

Presently, securing GRIT positions is largely decentralised, relying primarily on proactive posting by the hiring entity or a small number of private jobs clearing houses. Polytechnics and some university programmes do sponsor internships, but only for students that have first completed their coursework components. Most programmes accepting apprenticeships focus on technical or professional disciplines, such as finance, technology, medicine or law.

These facts mean that the benefits of OJT will tend to accrue to only limited segments of the labour force and indeed, the majority of current listings are for science, technology, engineering and mathematics (STEM) or finance graduates, many of whom already possess the means to seek, identify and apply to such opportunities. There is substantive evidence that internships and apprenticeships do not only contribute to enhance knowledge transfer and more efficient production but can also play a role in reducing the extent of labour market polarisation, which is becoming a growing concern in Singapore. However, such systems tend to be more successful when operating within the rubric of a larger institutional framework.

A national level institution would establish the standard rules behind each party's commitments, promote worker firm matching and encourage the movement of journeymen to other firms once they have completed their formal training. Importantly, by taking the lead in establishing a nationally recognised internship and apprenticeship programme that enables voluntary progressive acquisition of certifications, the Government can also codify a learning culture that opens up the substantial benefits of such experiences to a much wider range of candidates. Non-academic pursuits, such as the culinary arts, music and sports; artisanal practices, such as horology, furniture making and other skilled crafts; and professions that rely on experience and OJT rather than book smarts alone. In other words, will the Government be an advocate for Singaporeans that have ambitions to contribute to traditionally underserved sectors of the economy that nevertheless are passed to meaningful middle-class secure jobs?

This national OJT system can be strengthened by two further elements. First, to encourage buy in from the corporate side. I further propose that workers be allowed to apply their SkillsFuture Credit toward paid internship programmes. Second, in line with standard practice, such apprenticeships and internships can typically be short term, six months to a year —

The Chairman: Mr Melvin Yong.

Uplifting Lower-wage Workers

Mr Melvin Yong Yik Chye (Radin Mas): Mr Chairman, uplifting the wages and work prospects of our lower-wage workers is fundamental to building a truly "we first" society, one where progress is shared and no worker is left behind.

The Progressive Wage Model (PWM) has delivered significant gains over the past decade. Lower-wage workers saw income growth that outpaced the median. However, from 2024 to 2025, median real income growth exceeded that of lower-wage workers.

This reversal, though modest, is a warning signal. If we are serious about inclusive growth, the wage growth for lower-wage workers must consistently outpace that of the median, not merely keep pace with it. The increase in the Local Qualifying Salary is welcome. But wage mandates alone are not enough. Employers must drive business and workforce transformation so that productivity gains are built into lower-wage roles.

The strength of PWM lies in linking wages to skills, responsibilities and productivity, rather than imposing a blunt wage floor. It preserves dignity and encourages progression.

The Tripartite Workgroup on Lower-Wage Workers reaffirmed productivity as the foundation for sustainable wage growth. I therefore ask MOM, have we seen measurable sectoral productivity gains in PWM sectors? If not, what further interventions will be introduced?

Workers must be supported to upskill and reskill to strengthen career mobility, especially as AI reshapes our economy. Access to training must become smarter and more targeted. I urge MOM to leverage AI to personalise SkillsFuture course recommendations, integrated into National Trade Union Congress' (NTUC's) AI-enabled career coach, so that workers receive clear guidance on their next skills pathway.

AI will reshape every sector. The question is not whether jobs will change, but whether lower-wage workers will benefit from the change rather than be displaced by it. I call on the Government to work very closely with tripartite partners to co-develop AI-augmented roles and to update skills frameworks, so that technology adoption translates into measurable productivity gains, better job quality and stronger wage progression particularly in PWM sectors.

Mr Chairman, the question before us is simple. As Singapore advances, will our lower-wage workers advance faster? Inclusive growth does not happen by chance. It requires intent, accountability and action. Let us recommit to ensuring that the ladder of progress remains firmly within reach and that no worker is left behind.

Raising Income Thresholds for Workfare

Assoc Prof Jamus Jerome Lim: Sir, in 2025, the accessible income threshold for Goods and Services Tax (GST) vouchers was revised upward, from $34,000 to $39,000. This was not the first time. It was set at $24,000 in 2012 before being consistently raised every few years. These historical revisions were due to a combination of rising cost of living as well as the GST hike. This represents an increase since 2012 of around 1.6 times.

In contrast, the income thresholds for the Workfare Income Supplement (WIS) have gone from $1,700 pre-2013 to $1,900 in 2013, to $2,500 in 2023, to $3,000 in 2025. This equivalent increase is around 1.75 times. While this may seem comparable, the truth is that the most recent bout of inflation hits the poorest the most. This is because the categories where prices rose the most, notably food, transport and rent, consume a disproportionate share of the incomes of those in the lower end of the distribution.

It is a conclusion backed by ample research, both in Singapore and the rest of the world. It is true that this may be partially offset by nominal wage gains that bolster purchasing power. But it is unclear if this is the case. After all, while real incomes for the lowest percentile showed significant progress in 2024, this comes on the heel of many years of falling behind median real income growth. I believe that it is time to disproportionately raise the income threshold for WIS to $3,500, to better support those who are working hard to make ends meet but struggling under the burden of high costs.

2.15 pm

Underemployment in Singapore

Mr Patrick Tay Teck Guan: I am particularly concerned about non-time-based involuntary underemployment in Singapore and urge for closer monitoring of this trend.

NTUC has embarked on a study with the Singapore University of Technology and Design, and will share more soon. We realise this is often fuelled by mismatch in jobs, skills and expectations of employers, including job seekers both young and not so young. There may be occasions where underemployment may occur as a result of this mismatch. We should monitor this closely and provide proper career counselling, coaching and mentoring at all stages of a person's career from his/her first job, during his/her first job, when looking for the next job or beyond retirement and re-employment.

In the same vein, I suggest both individual and employer SkillsFuture credits be approved for use towards professional career coaching, guidance, mentoring and counselling services for workers and individuals beyond those currently provided by our IHLs, WSG and e2i.

Closing Youth Employment Gap

Mr Gerald Giam Yean Song (Aljunied): Sir, Singapore school leavers face a challenging job market. As AI automates many entry level tasks, firms are increasingly prioritising candidates who are immediately productive over fresh graduates. The unemployment rate for residents below 30 was 5.5% in September 2025, almost twice the national resident unemployment rate. Without access to quality roles soon after graduation, many of our youths risk a long-term scarring effect, where early joblessness correlates to lower lifetime earnings, skills atrophy and even social and civic alienation.

Before I continue, I wish to declare that I am a director and shareholder of a company which is an SME. To support young Singaporeans in facilitating a smoother entry into the workforce, I propose a Youth Wage Credit Scheme. This initiative incentivises micro and small enterprises to offer ITE, La Salle, NAFA, Polytechnic and University graduates their first permanent positions. It will provide a 20% wage credit over the first three months of employment, covering the critical probation and initial training period. The Government could co-fund 20% of their salary with the payout capped at $1,000 per month. This ensures that graduates gain access to quality roles and structured training while the Government offsets the initial costs of onboarding. Targeting these wage credits in micro and small enterprises empowers these smaller businesses to offer more competitive wages, helping them to compete for talent against medium and larger enterprises.

To address employers' concern of young recruits leaving soon after being trained, the Government could fund an additional 20% of a one-month retention bonus to be paid out only on the first anniversary of employment. I propose that this scheme be implemented for an initial three years period with a robust assessment of its effectiveness before any extension.

This scheme would complement the GRIT scheme. However, while GRIT offers temporary three- to six-month placements, it does not guarantee the stability of full-time employment. This proposal encourages permanent hiring from day one. Crucially, while GRIT is limited to just 800 places, this wage credit could support a much larger proportion of the 53,000 or so students graduating each year.

The Youth Wage Credit Scheme shifts the focus from temporary trainingships to immediate stable SME employment. By incentivising permanent hires, it buffers against AI-driven displacement and ensures Singapore's next generation enters the workforce with greater security and confidence.

Redesigning Jobs

Assoc Prof Terence Ho: Mr Chairman, I declare my interest as a senior executive of an educational institute that offers workplace learning and job redesign consultancy services.

I worry about the mismatch between jobs that are plentiful in Singapore and the number of local workers who are willing to take them up. With our ageing population, jobs in nursing and healthcare will continue to grow. While generative AI may pose risks to various white collar occupations, jobs which require manual skills or dexterity remain comparatively resilient to automation. Skilled trades like technicians and mechanics are not so easily automated.

However, many young Singaporeans do not aspire to careers in healthcare and skilled trades. This will increase our reliance on foreign manpower for essential roles, while making it hard to fulfil the job aspirations of our young people. The reality is that not all Singaporeans can be professionals or corporate executives in a highly competitive and technologically driven global economy. Many will have to build careers in services and skilled trades. Wages are an important consideration and the pay in these jobs must rise. Yet job attractiveness also depends on whether work is meaningful and how it is perceived by society.

My question is whether we can be bolder in redesigning jobs, such as nursing, security and skilled trades, at scale so that they become occupations our young people aspire to pursue, so that AI and robotics take over the tedious aspects of work, while workers contribute to service design, innovation and customer engagement. There should be more jobs, like Advanced Practice Nurses, offering greater professional responsibility with commensurate remuneration and recognition. The aim should be to develop roles that integrate head, heart and hand competencies, making them more resilient to AI and automation as well as more appealing to Singaporeans than single-dimensional jobs.

There is a second aspect of job redesign I would like to highlight. As organisations review work processes to harness AI and automation, we need stronger capabilities for human-centric job redesign, ensuring that AI augments rather than replaces human contribution.

I remain optimistic about the unique value that people bring notwithstanding the rapid development of more powerful AI models. This is because AI models lack consciousness, they do not have an innate sense of right and wrong, and they are trained based on past or existing data. Recognising these limits can help us identify the uniquely human strengths that should shape job redesign. I hope that Singapore can show the way in human-centric job redesign and would like to ask whether the Ministry has plans to develop deeper expertise in this.

Let me conclude with a brief illustration. Last year, while attending a conference in Astana, I joined a day tour led by a young guide. He brought me on a short hike to a hilltop overlooking a lake, which was not a typical tourist destination. It was where his grandparents had brought him as a child to play. That personal story and human connection to a place, created an experience that no electronic guide or AI could replicate. This gives me hope that even in an AI-enabled future, human insight, empathy and storytelling will remain central to meaningful work.

Supporting the Portfolio Generation

Ms Eileen Chong Pei Shan (Non-Constituency Member): Sir, we have invested in building the infrastructure for a skills-first economy. Tools like the career and skills passport launched in November 2024 reflect that ambition. We know that more than 700,000 individuals have accessed the passport as of November last year. This is a good sign of uptake, but uptake does not tell us if there has been a meaningful shift in how employers evaluate and hire candidates. Tools can change how workers present their skills, but tools alone cannot change hiring behaviour. If employers continue to hire based on degrees and past job titles, then the passport risks becoming, as my colleague Andre described yesterday, a digital filing cabinet.

The evidence points to a real gap. The 2025 Skills-First Readiness and Adoption Index developed by the Organisation for Economic Co-operation and Development (OECD) and the Institute for Adult Learning ranked Singapore 12 out of 30 participating countries. While Singapore made meaningful progress in adopting skills-first practices, key gaps, such as business adoption of skills first hiring and stronger ecosystem coordination, remained.

Relatedly, in a survey conducted by the Institute for Human Resource professionals, nine in 10 respondents were confident that skills-first hiring widens their organisation's talent pool. However, 63% of hiring managers, the people conducting interviews and on the front lines of recruitment, said they are unfamiliar with skills-first hiring practices.

This is a capability gap, not a values problem. The new statutory board formed by the merger of WSG and SSG was announced as a one-stop shop for workers. I hope it can also become a transformational partner for employers. It should seek to close not just the skills gap, but the assessment gap that sits between workers who have built a real portfolio of skills and employers who cannot yet see them.

I have two suggestions. First, for the new agency to develop practical tool kits that employers can use for portfolio-based assessment and skills-first hiring. Second, build skills-first hiring capability into the HR industry transformation plan embedded into certification pathways for all tiers of HR professionals.

Singaporean Core and Human Capital Practices

Mr Patrick Tay Teck Guan: I wish to ask MOM for the status of the Strengthening the Singaporean Core efforts in Singapore as well as an update on COMPASS. How effective it has been since its start especially now with the doing away of the Fair Consideration Framework triple-weak watchlist?

Some recruiters have candidly shared with me that they only post on MyCareersFuture portal if they must fulfil the Government's requirements to put up the job for 14 days before they can hire foreign PMEs. If that is the case, it will be hard for the Government to have a good sensing of all the available job openings in Singapore. Would MOM consider mobilising and/or requiring all companies to post their available openings on the portal for ease of tracking, analytics and sensemaking of industry hiring needs?

By the same token, there are those whom I have heard comply with the 14-day posting requirement merely as window dressing. Likewise, a closer scrutiny of employment agencies is much needed at this juncture as sometimes such breaches and window dressing are carried out by them. I urge MOM to pay a close watch on this.

On the second point on human capital practitioners, especially their practices and processes are really key to foster a fair and inclusive workplace including one with a strong Singaporean Core. I am aware that the Institute for Human Resource Professionals (IHRP) is doing good work to certify human capital practitioners with the IHRP certification. I declare my interest as co-chair of the workgroup looking at human capital development.

Can MOM progressively then mandate the certification of HR practitioners, now that we have this IHRP certification in place? In the interim, perhaps companies should consider having at least one IHRP-certified HR professional before they can be allowed to hire any foreign manpower. In the same vein, I suggest that employers be allowed to use their Enterprise SkillsFuture credits, similar to what workers have, for sending their HR staff for IHRP training and certification.

Calibrating Singaporean Core and Competitiveness

Mr Mark Lee (Nominated Member): Chairman, businesses support the principle of a strong Singaporean core. Foreign manpower must remain complementary, not a substitute. That social compact is fundamental and must be upheld. However, what we are seeing is not a marginal adjustment. It is a structural reset of labour cost baselines.

Since 2020, the Employment Pass qualifying salary will rise from $4,500 to $6,000 next year, roughly a one-third increase in just over six years. Over the same period, the S Pass qualifying salary has moved from $2,500 to $3,600 in 2027, about a 44% uplift. Tier-1 S Pass levies are now $650. The Local Qualifying Salary (LQS) will increase to $1,800 in July.

Individually, each move may be defensible. But taken together, they represent a meaningful shift in cost structure, particularly for sectors where the local manpower pool remains limited despite best efforts.

At the higher end, Singapore competes to anchor regional headquarters and specialised mandates. Location decisions are increasingly marginal between Singapore and other hubs. When higher EP thresholds are layered onto elevated rentals, energy and compliance costs, the cumulative effect matters. Relocations are visible. Investments that never materialise are not. Missed mandates and unanchored teams can quietly narrow future job creation for Singaporeans.

At the S Pass, the pressure is even more immediate. Domestic-oriented sectors, such as F&B, retail and other labour-intensive sectors, operate on thin margins. Many have already digitised and streamlined. Further cost escalation leaves two paths: raise prices, contributing to cost-of-living pressures; or compress operations, reducing service levels and employment scale.

Importantly, these same sectors are supporting wage uplifts for lower-wage Singaporean workers. If viability weakens, the very workers we seek to uplift may face slower hiring and progression.

On LQS, let me be clear: uplifting lower-wage Singaporeans is a national priority, and employers support this direction. The Progressive Wage Credit Scheme helps. The issue is not principle, but pace and calibration, especially when multiple levers move concurrently. There is also a structural tension. Firms are encouraged to upgrade foreign manpower quality. Yet levy increases across skill tiers mean that both upgrading and retention are becoming more expensive. When cost differentials narrow, the incentive to upgrade may weaken.

The question, therefore, is how we preserve three objectives simultaneously: safeguarding the social compact, preserving Singapore's competitiveness and sustaining long-term employment opportunities for Singaporeans.

How does MOM assess whether cumulative qualifying salary and LQS adjustments are strengthening the Singaporean core without eroding competitiveness? Is there a structured framework to assess sectoral sensitivity, particularly in industries with thin margins or limited automation pathways? And are there mechanisms to recalibrate if unintended economic effects begin to emerge?

If we calibrate carefully, Singapore can remain both competitive and cohesive, a place where businesses grow, investments anchor and Singaporeans thrive.

2.30 pm

Being Pro-business to be Pro-worker

Mr Shawn Loh (Jalan Besar): Mr Chairman, I declare that I am the Group Managing Director of Commonwealth Capital Group, a Singapore global enterprise that stewards more than 1,000 livelihoods. A core part of the Government's agenda is jobs. In addition to an income, jobs provide dignity, meaning and confidence to our workers – something that Government handouts cannot fulfil.

We should be pro-jobs and pro-worker. I would add that the Government should embrace the philosophy that to be pro-worker, our policies also have to be pro-business. We should see companies as platforms and partners for the Government to achieve its policy goals. Let me name three.

One, we want to keep seniors employed longer and ideally on similar salary terms as when they were younger, even if their productivity declines. Two, we want to narrow income inequality by uplifting wages at the lower end, even above productivity levels of lower wage workers. Three, we want jobseekers to find jobs as soon as possible, even if it means they have to acquire skills on the job in order to do the job well.

From the perspective of employers, hiring is seldom short-term. Companies plan more than one year in advance. I therefore suggest that MOM's policies incorporate two more principles.

First, as Mr Mark Lee also said, companies should be given more time to adjust and adapt to policy changes. Second, companies should be given more longer-term direction instead of annual, effectively ad hoc grant extensions. I propose to apply this immediately.

First, to the Senior Employment Credit, extended again this year after extensions in 2023 and 2025. Why not just commit to a longer-term extension, with employers given two years' notice of any change?

Second, the Progressive Wage Credit Scheme (PWCS) can be made more longer-term. Or why not fold this into the permanent Workfare scheme? This is particularly important if technology changes widen productivity gaps beyond what is reasonable for our lower wage workers to close despite all their effort. In addition, the minimum wage increase to qualify for PWCS support should be retained at $100 instead of the Government's change to set it at $200.

Third, integrate the Government's traineeship and place-and-train programmes, such that employers get time-limited salary support to hire any jobseeker who has been actively looking for a job for six months. The Government already has a working model today in the form of Career Conversion Programmes. In my proposal, we should then not need to impose a different job or different sector requirement for those who are looking for a job for more than six months. This effectively covers Mr Gerald Giam's proposal for our youths who are looking for jobs.

These moves are pro-business. And ultimately, they are ultimately pro-worker. This will definitely do a good job in alleviating the job-related anxieties that many of our Members have raised.

Driving Workforce Transformation

Dr Wan Rizal (Jalan Besar): Chairman, technology does not transform companies, people do. If we want sustained growth, enterprises and workers must transform together. Not AI first and people later, it is together. That is why the implementation of the enterprise workforce transformation package matters.

First, tie technology adoption to job redesign. Many firms are investing in AI and automation, and that is good. But the real test is this: are we redesigning jobs or just reducing headcount? We must make job redesign a default expectation of enterprise transformation.

When a logistics SME adopted AI route optimisation, they did not cut drivers. They trained them in digital fleet coordination and customer management. Productivity improved and wages too. In precision engineering, AI-enabled inspection reduced manual checks. Instead of displacement, technicians were reskilled into robotics maintenance and data functions. That is the model we want. Adopt technology, redesign jobs, reskill workers and reshare the gains.

Second, make transformation practical for SMEs. SMEs face real constraints: cost, capability and confusion. If assessing support requires navigating multiple schemes and agencies, we will lose them. Can MOM ensure the package is streamlined with clear advisory support to help SMEs conduct structured job redesign and skills mapping exercises? Transformation must be hands on, not theoretical.

Third, show workers a clear pathway. For workers, transformation must answer three questions. What skills do I need? Who supports my training and how will my wages progress? Mid-career and low-wage workers in particular must see tangible progression not just of digitalisation. If AI raises productivity, but wages remain flat, then confidence will certainly erode.

So, my question to the Minister is this. How will MOM measure whether enterprises are redesigning jobs alongside technology adoption? Second, will MOM publish outcome indicators, such as the number of jobs redesigned and wage progression outcomes? Third, how will advisory support for SMEs be strengthened to ensure AI adoption leads to job upgrading, not displacement? And fourth, how will MOM support gig workers and self-employed persons whose rice bowls are broken by AI?

Chairman, enterprise transformation is necessary, but workforce transformation is non-negotiable. Growth must upgrade our workers, or it will not last.

Career and Employability of Matures PMEs

Ms Jessica Tan Soon Neo (East Coast): Mr Chairman, with professionals, managers and executives (PMEs) forming 64.2% of our resident workforce and Singapore becoming a super-aged society, strengthening the career health of PMEs in their 40s, 50s and early 60s is increasingly urgent. Our workforce is ageing quickly. The median age of workers is now 45, and as industries transform, many mid-career PMEs face heightened risks.

We already have strong foundations. SkillsFuture participation reached more than 600,000 in 2025, job redesign and upskilling efforts continue through the Company Training Committees (CTCs) and the Alliance for Action (AfA) on Multi-stage Careers adds further scaffolding. But to sustain employability, we must now make career health mainstream, preventive and easy to act on. I have three recommendations.

One, introduce a national career health screening. I propose augmenting MyCareersFuture and the NTUC AI career coach with a nationally standardised, subsidised career health screening for PMEs aged 35 to 65. Like preventive health checks, this diagnostic would assess skills readiness and digital gaps, role fit and mobility options; and transition risks, especially in sectors seeing softening demand, such as professional services, manufacturing and information and communications technology. Higher risk cases will receive a short human coaching review directly linked to MyCareersFuture for follow-through. A standardised screening, paired with human support, helps PMEs take early action and helps employers anticipate redeployment and workforce transformation needs.

Two, make mid-career renewal a shared responsibility.

Workers are upskilling, more than 458,000 Singaporeans used their SkillsFuture credits last year. But employers, especially SMEs, need stronger support to redesign roles, retrain staff and hire mid-career candidates. A co-funded renewal scheme could support job redesign, redeployment into growth areas and role specific, employer validated training. This is essential, as retirement and re-employment ages will rise to 64 and 69 this year. Mid-career renewal will affect nearly every PME's working life. I will expand on strengthening human resources (HR) capabilities in my other Committee of Supply cut later.

Three, embed multi-stage careers in workplaces.

Careers today are not linear. With an ageing population and longer lifespans, drawing on evidence-based frameworks, including the Stanford longevity model, we can mainstream a national career taxonomy across the build, consolidate, retrain and transition stages. This provides a shared language for both workers and employers, enabling better planning, clearer expectations and more proactive career decisions at each career's life stage.

Mr Chairman, supporting the career health and employability of our mature PMEs require a new national compact built on shared responsibility. The Government must provide early signal tools, accessible support and clear pathways. Employers must redesign work and invest in mid-career renewal. Workers must take ownership of their lifelong career health.

If we get this right, PMEs will have the clarity, confidence and capabilities to stay employable and contribute meaningfully across longer, more fulfilling careers, ensuring Singapore's workforce stays resilient as we age.

Skilled Trades Deserve Respect and Support

Ms Diana Pang Li Yen (Marine Parade-Braddell Heights): Chairman, I rise to speak on creating diverse pathways to success through skilled trades and the mindset shift we need as a society to recognise hands-on work as essential, skilled and worthy of respect.

During these debates, much has been said about the rise of AI and its multiple uses. However, let us not forget that every day, Singapore runs on the work of people who fix our lifts, maintain our estates, keep the kitchen running, service our vehicles, install electrical systems and respond when things break down. These are not "low-skilled" jobs. They are jobs that require craft, discipline, judgement and often years to hone. AI cannot do these jobs. If we want a strong local labour core, we have to value these jobs, these roles, not just in words, but in how we treat these workers and how we design progression for them.

Chairman, I welcome the direction that the Government will work with employers, the labour movement, trade associations and institutes of higher learning to develop structured career pathways for skilled tradesmen, so that this inclination towards hands-on and "heart" jobs can see how they can advance and how they can build a career. This is an important signal, because recognition is not only social esteem. It is also the clarity of a pathway. People will invest in mastery when they see where the mastery leads.

So, I make three practical calls.

First, actively promote the message that skilled trades are essential work and a respected choice, not a backup, not a second choice. This is about dignity and pride in the way that we work. It matters for how young people, parents, employers perceive these pathways.

Second, we should ensure that the trade mastery translates into a good living. Skills take time to build, deep mastery should be rewarded through structured progression, skills-based pay bands and credible steps from apprentice to specialist to titles, such as master craftsman. If we want Singaporeans to stay in trades, real wages and progression must be clear and competitive.

Third, firms must be part of the solution. I urge employers to support and fairly remunerate trade workers, and for the Government to work with the industry to build consistent standards for training, mentorship and assessment, especially in SMEs where the capability varies. A strong local workforce will not be built on goodwill alone; it will be built on systems that make skills development, progression real.

Chairman, my question is this: as structured career pathways for skilled trades are being developed, I hope the Ministry can ensure that they are visible, trusted and outcome-driven, so that skilled workers can make real progression and real recognition, and young Singaporeans can see that trades are a first-choice in a pathway to success.

Valuing Skilled Trades Pathways

Mr Saktiandi Supaat (Bishan-Toa Payoh): Mr Chairman, in Toa Payoh recently I spoke to a lift technician servicing one of our older blocks. He shared that the systems today are far more complex than before. His job is no longer just mechanical repair, it requires interpreting system data, troubleshooting hybrid systems and ensuring safety standards are met. That is not low-skilled work but applied technical expertise. Even the most advanced AI systems cannot repair lifts in our Housing and Development Board (HDB) blocks, maintain our Mass Rapid Transport (MRT) trains and tracks or service precision manufacturing machinery all by itself.

As we automate more processes, we need highly competent technicians who complement AI. We must invest adequately in skilled trades, so that we do not have high-end innovation without sufficient operational depth. Does the Ministry track medium- to long-term manpower projections for critical skilled trades, especially those supporting digital infrastructure and the green transition? Are we detecting any emerging gaps?

From a wage and productivity perspective, if trade careers do not offer clear progression and competitive earnings, young Singaporeans would be discouraged from entering these sectors and local core would weaken over time. Are there already signs of wage compression in middle-skilled technical roles and how might this affect the attractiveness of these careers to Singaporeans?

True trade mastery takes years of apprenticeship, repetition and accumulated experience, which ought to be rewarded with a good and stable living. Would the Government consider developing a National Master Trades Accreditation framework – a national tiered certification that recognises advanced trade mastery, similar to chartered professionals in other sectors and create a new avenue for career switchers and career transition for segments of our workforce?

How is MOM working with IHLs and industry bodies to develop a clear and transparent trade career ladder with indicative wage benchmarks, so that progression from apprentice to senior specialist is clearly structured in responsibilities and in remuneration?

2.45 pm

Support for Workers in a Changed World

Mr Ng Chee Meng (Jalan Kayu): Chairman, over the past decade, the Labour Movement has worked closely with tripartite partners to secure better wages, welfare and work prospects for our workers. Our workers, including PMEs, have consistently seen real wage growth. Thanks to the Progressive Wage Model, our lower-wage workers experienced the strongest percentage growth in their real incomes. Income inequality today is at its lowest level on record. PMEs now also have better support if they are retrenched through the SkillsFuture Jobseeker Support Scheme. Our young graduates have extra support to find work through the GRIT scheme.

Looking ahead however, technological and global economic shifts could result in more frequent employment disruptions for our workers, including and especially our PMEs. As our society enters a "super-aged" era, our workers will also face more intense caregiving demands. These changes will hit our workers, from the younger to the older, from blue collar to the white collar. As such, we must do more to address their unique needs and challenges.

Today, I will focus my cuts to seek more support for our young graduates, PMEs and caregivers. My fellow MPs have covered or will cover the other worker segments.

First, let us do more to build up the career health of our young graduates from the onset. Many Members in this Chamber have spoken up likewise. Our young graduates are entering the workforce at a time when the nature of work is shifting. In some instances, they need to outcompete AI at entry-level jobs, in others, they need to swiftly top up their skills with AI to be relevant. Throughout their careers, they will likely need to adapt and pivot multiple times, as the pace of change and skills obsolescence increase.

I ask for MOM to be alongside our young graduates as they navigate these challenges. We must boldly rethink, refresh and re-shape our skills and jobs ecosystem so that workers, including the PMEs, can be better supported and enabled as they navigate the different stages of their careers, from graduation, all the way till retirement.

The move to merge SSG and WSG is thus a step in the right direction. In making this move, we must endeavour to foster a better integration of business and workforce transformation.

This is important. From NTUC's experience, workers, including PMEs, are much more ready to upskill when they can see their training resulting in better wages or better work prospects. In addition, when business transformation is done hand-in-hand with workforce upskilling, true value is unlocked because businesses can better incorporate AI into their business model, and workers can better apply what they have learned and share in the real productivity gains.

I have two clarifications to make. First, can the Ministry share more details on how the merger between SSG and WSG will benefit our workers, including PMEs, in their career journeys from graduation to retirement? Second, is the Ministry considering how to better integrate the various efforts across business and workforce transformation, together with Tripartite partners, as part of the new setup?

The second group I would like to speak for is our PMEs. PMEs – especially mid-career, middle-income PMEs supporting their children and aged parents – are especially worried about the impact of retrenchments to them and their families.

That is why NTUC has been calling for more support for our workers, especially PMEs, facing retrenchment. We have asked for mandatory advance retrenchment notifications, so that earlier and better transition support can be given to PMEs facing retrenchment; and the SkillsFuture JobSeeker Support Scheme to be reviewed to ensure a baseline level of support to our middle-income PMEs.

In that light, I would like to ask the Ministry whether the Mandatory Retrenchment Notifications can be brought forward to enable earlier and better support to retrenched workers; and for the coverage of the current SkillsFuture JobSeeker Support Scheme to include our middle-income PMEs.

The third group I would like to cover are our caregivers. As Singapore ages rapidly, more workers, especially the "sandwiched generation" in their 30s to 50s, will face dual pressures from caring for young children and elderly parents.

Caregiving emerged as a key concern as early as 2023 in our #EveryWorkerMatters conversations. In NTUC's recent survey of Economic Sentiments, close to one in two caregivers surveyed considered leaving their job due to stress from caregiving. More must be done to support our caregivers to juggle work and caregiving.

First, let us move towards stronger institutional measures, including statutory paid caregiving leave, so our caregivers can stay employed, keep their skills current in a rapidly transforming economy. Second, provide caregivers who drop out of work due to caregiving with greater support and earlier assurance for their own retirement adequacy. The one-off means-tested Central Provident Fund (CPF) top-up to provide additional support to boost retirement adequacy of Singaporeans aged 50 and above is a step in the right direction, especially for our caregivers.

However, there is one group that I am particularly concerned about – the 13,000 or so who are out of the workforce to care for their elderly. I note from MOM's data that this group is largely female, single, 50 and above, non-tertiary educated and do not have any or any recent work experience.

We think that there is scope to do more. We ask the Ministry to study providing targeted CPF top-ups for middle- to lower-income caregivers who have left employment for caregiving and who lack retirement adequacy. These measures would help provide greater support and earlier assurance for our workers that their sacrifices made for caregiving will not unduly compromise their own long-term needs. I would therefore like to ask the Ministry on its plans to study and consider measures to better support our caregivers' employability and retirement adequacy.

More support for Retirement Adequacy

Mr Sanjeev Kumar Tiwari (Nominated Member): Mr Chairman, as we become a super-aged society and live longer, having enough for retirement becomes critical. NTUC and the unions have constantly advocated for the reinstatement of CPF contribution rates for mature workers to match those of younger workers. I was glad to hear the Prime Minister's Budget 2026 announcement on the enhancements to the CPF Scheme to support our workers' retirement adequacy.

We thank the Government for continuing with the increases and for also extending the CPF Transition Offset to support employers implementing the increase. However, as Singapore's workforce ages amidst a challenging and hyper-competitive environment, how does the Ministry track outcomes and ensure senior employment rates are not affected, especially for those aged 55 to 64?

We also look forward to the new voluntary CPF investment scheme offering life-cycle investment products. For many, the CPF Special Account was a familiar and stable way to grow their savings. Following the closure of the CPF Special Account in 2025, some members expressed uncertainty about growing their monies to prepare for their golden years, especially after turning 55.

Could the Minister share how this new scheme will be explained clearly to members, especially people who may not be familiar with investment risks and cannot afford to take such high risks? What guidance will be in place so they can make informed decisions, and not inadvertently take risks that they do not fully understand?

Finally, I also welcome the topping up of the CPF balances for Singaporeans aged 50 and above with lower balances. I call on the Government to continue closely monitoring Singaporeans' retirement adequacy outcomes, more so for those who are needy, in vulnerable sectors, older and have lower CPF balances, given the transformation that is taking place.

A Lifetime of Retirement Savings

Mr Shawn Loh: Mr Chairman, the Lifetime Retirement Investment Scheme will be a game changer for the CPF system. When I raised it in parliament in January, I was glad to hear that MOM was in the final stages of implementation.

After 10 years of study! Over that period a typical global investment portfolio of 65% equities and 35% bonds would have earned around 6% per year in Singapore dollar terms. Investible savings in the CPF Ordinary Account would have earned only 2.5% per year. These few percentage points, over a long time horizon, could be the difference between retiring with anxiety and retiring with peace of mind. This could also be part of the solution to address wealth inequality, given that the broad middle class has a significant amount of assets in CPF savings.

The CPF LRIS may not be for everyone. As Mr Sanjeev said, individuals need to assess for themselves based on their own risk appetite. Some may want their Ordinary Account savings to be more liquid for future housing needs. Others may prefer not to use their Special Account savings that earn 4% risk-free. In fact, given the Prime Minister's update last week that three in four CPFIS investors using the Special Account underperformed the 4% risk-free rate, the Ministry should consider closing the CPFIS scheme for the Special Account once the LRIS is launched.

Overall, I believe the LRIS will benefit the majority of Singaporeans, especially if we can do the following. First, mount a large scale public education campaign over the benefits of taking long term investment risk to achieve a higher expected return. This should not be routine public communications, but more of a sales pitch to Singaporeans on balancing long term, non-speculative investment risk for higher expected returns.

Second, make it as easy as possible to opt-in for the LRIS, perhaps even make the LRIS the default option for some. For example, default Ordinary Account savings above the Full Retirement Sum into the LRIS, unless the CPF member opts out.

Third, add more friction for Singaporeans to speculate with the LRIS. For example, there could be cooling off periods. And those who want to sell before retirement could be required to attend a financial literacy course explaining the dangers of short-term speculation for non-professional investors.

Overall, with better financial literacy and wise behavioural nudges, we can empower more Singaporeans to optimise their lifetime of retirement savings and retire with peace of mind.

The Chairman: Order. We have been in the Chamber for the last five hours, so I propose to take a break now.

Thereupon Mr Speaker left the Chair of the Committee and took the Chair of the House.

Mr Speaker: Order. I suspend the Sitting and will take the Chair at 3.30 pm. Order, order.

Sitting accordingly suspended

at 2.57 pm until 3.30 pm.

Sitting resumed at 3.30 pm.

[Deputy Speaker (Mr Christopher de Souza) in the Chair]

Debate in the Committee of Supply resumed.

[Deputy Speaker (Mr Christopher de Souza) in the Chair]

Head S (con't) —

The Chairman: Mr Saktiandi Supaat.

3.30 pm

CPF Adequacy and Responsible Choice

Mr Saktiandi Supaat: Mr Chairman, I would like to declare that I was a member of the CPF Advisory Panel. Mr Chairman, every Singaporean deserves a secure and adequate retirement. In Budget 2026, the announced low-cost life-cycle investment scheme provides a new option to manage one's CPF funds. I support giving members more options, but I would like to emphasise three principles that should guide our design of the renewed system – complementarity, suitability and safeguards.

First, complementarity. The new scheme must be clearly positioned as an additional option, and not a replacement for, CPF's risk-free interest framework. For many Singaporeans, especially older workers and those prioritising certainty, CPF's guaranteed interest remains highly attractive. CPFIS already exists for members who wish to actively invest.

The new life-cycle scheme sits in between, for members who want some market exposure but prefer a professionally managed, automatically rebalancing portfolio. Our communications must allow all CPF members to appreciate the differences in the three options and to ensure that each option still serves the needs of a significant demographic of CPF members.

Even with this new life-cycle scheme, we should continue to refine the CPFIS. The trends are worrying because the majority of CPFIS investors have been underperforming the CPF's risk-free interest rates since 2016 when the CPF Advisory Panel that I sat on studied this issue and first proposed the Lifetime Retirement Investment Scheme. Is this a result of the restricted products that can be invested in through CPFIS or some other reason?

The second principle is suitability. CPF members are not homogeneous. A 30-year-old with a long investment runway has very different risk capacity from a 58-year-old approaching retirement.

While the glidepath structure, reducing risk as members age, is sensible in theory, we must ensure members understand that: first, returns are not guaranteed; second, market downturns can occur close to retirement; and third, a shorter runway limits recovery time.

Communications, especially to older members must be careful, balanced and transparent. Since CPF already offers a risk-free interest baseline, how will CPF Board ensure that the trade-offs of each option is sufficiently explained against their potential upside? Will there be clear scenario illustrations or simple decision-support tools, such as prompts based on age, years to retirement and risk tolerance, to guide members through the three alternatives?

Third, safeguards and governance. On product design, how will CPF Board calibrate the glidepath between growth and capital preservation? Will there be more than one glidepath option to reflect different risk appetites?

The scheme also mentions phased liquidation before the target retirement date. How early will this begin? And how will liquidation be managed during periods of heightened market volatility? Will the scheme allow flexibility in selecting target retirement dates, as we extend working lives and members may retire later than 65?

On fees, the objective is rightly to keep costs low and simple. Will there be an all-in fee cap, including management fees, platform costs and transaction expenses, so members see one transparent figure? How will providers be selected and what weight will be placed on long-term track record, risk management capability and operationalised resilience?

Lastly, in his round up speech, Prime Minister did mention that the rollout of the life cycle investment option is slated for 2028. When the scheme is implemented in 2028, how will the Ministry measure success in terms of participation rates, risk-adjusted returns and improvements in retirement adequacy outcomes for CPF members? And given the long lead time to 2028, has the Ministry considered piloting or phasing in elements of the life-cycle investment approach earlier, so that members can begin benefiting from it sooner?

Strengthening Career Health of Our Workers

Ms Gho Sze Kee (Mountbatten): Mr Chairman, in my maiden speech less than a year ago, I noted that in this age of AI-driven disruption, conventional assumptions about career progressions and trajectories will fly out of the window. This observation is becoming more urgent.

Technology cycles are getting shorter. Business models and roles are evolving rapidly. Entire jobs and industries are being disrupted. The old patterns of career stability no longer apply. New graduates are having a harder time landing their first jobs. Mid-career PMETs have to contend with greater career uncertainties.

Agility and resilience are the key words. We must all assume that there are no "safe" jobs anymore. Our workforce, up and down the value chain, must expect to not only upskill, but to reskill continuously throughout their working lives. Lifelong learning is no longer just another buzzword, but a default in the new reality we are in. We must keep moving forward with our chin up and be ready to pivot and transition to new careers and industries, when necessary.

But that is only half the picture. While some jobs and sectors are disappearing, entire new industries are also being born and many jobs are being redesigned and given new scopes. And employers are now struggling to find enough manpower with the skillset to match. This is the dichotomy that we are facing today. What we are seeing today is not just displacement, but a misalignment of our workforce.

To empower our workers and businesses to navigate this fast-evolving jobs market, there is a critical need for us to refresh our career and employment services ecosystem. For that to happen, we need to take a holistic, big picture view of the whole ecosystem, and strike a new compact among all the stakeholders. I see three parts to this.

Firstly, our workforce must, of course, take personal charge of their own career health proactively. This is the baseline, the buck stops at the individual.

Secondly, our employers too, should take greater ownership of the career health of their employees. In this new reality, employers should not see their workforce in purely numerical terms, but as stakeholders in the longevity and well-being of their enterprise. An enterprise thrives only when its people thrive. Investing in employees is not a cost, but a long-term investment in resilience and growth.

Lastly, I see the Government as having the most central, overarching role. We must recognise that the career health of our workforce underpins the economic health of our nation. It also requires a whole Government effort. The Government must ensure that the ecosystem we have in place is supportive of this effort. It requires a helicopter view and a coordinated, forward-looking approach connecting education, training, employment facilitation and employer engagement.

Our unions have a key supporting role in this. The tripartite partnership has long been the cornerstone of our industrial relations, and this collaboration will become even more important in a refreshed compact. I think our unions as the ecosystem's transceiver, receiving and sending signals. They act as a vital conduit between stakeholders, amplifying feedback and catalysing action.

Mr Chairman, career health must first start in our schools. Our education system must keep pace with the rapidly evolving jobs landscape. The young Singaporeans we prepare today must be ready for the careers of this brave new reality. They must not only be skilled for the jobs of tomorrow but must also be equipped for the jobs of the day after tomorrow. This means having the right mindset, adaptability, resilience and capability of navigating uncertainty.

Beyond the schools, we must ensure that the system also supports continuous upgrading and reskilling throughout working life. The Government has done much in this regard. There are job-matching internship programmes for fresh graduates and mid-career workers. These are programmes to assist those who are keen to pivot to new careers. There are support resources available for our workforce to reskill and upskill, and programmes to help who wish to, or who have to, transition into new roles. There are also resources to cushion the fiscal impact while they do so. Support exists for employers who are caught in the same choppy waters.

I personally see the tangible impact of these efforts. I am the Advisor to the Singapore Maritime Officers' Union (SMOU). Last year, SMOU together with the Maritime and Port Authority of Singapore and MOM partner agencies, launched the enhanced Tripartite Maritime Training Award (TMTA). The TMTA supports the mid-career transitions into the maritime industry. The trainees receive financial support in the form of a monthly stipend throughout their training. I am glad to note that the first batch of cadets under the enhanced scheme have all progressed to the sailing phase of their training and they will soon be joined by a larger second cohort.

This is one example of the work being done to support displaced individuals and better align our workforce with the needs of the economy. I invite the Minister to update Members on other similar initiatives that are supporting our workforce, such as the Career Health SG programme. But I must note that most of these initiatives are by nature, reactive.

The Government is the stakeholder best sourced to identify future trends, it can anticipate emerging disruptions and map out skills and capabilities that will be needed. It can be seen that the broader patterns, the cross-sector shifts, the systemic risks and opportunities, and the Government can translate them into action. It can help other stakeholders in the system stay ahead of the curve and bridge the disconnect between different stakeholders, bringing them together to match and realign resources, demand and skills. Mr Chairman, the buck may stop at the individual, but the Government has a critical role to play and I am keen to hear from the Minister.

Strengthening Human Resources Capabilities

Ms Jessica Tan Soon Neo: Mr Chairman, as our economy shifts and AI reshapes how work is done, companies and workers are feeling the pressure. Younger workers want to know how to grow in an AI-enabled world and mature workers want assurance that they would not be left behind. HR professionals sit in the centre of helping both groups navigate this transition.

Singapore has made meaningful progress through efforts, such as the Industry Transformation Plan, the Skills Framework for HR and the IHRP certification pathway. These initiatives have raised standards and enabled workforce planning, job redesign and data-driven HR. These are real steps forward, but capabilities remain uneven, especially among SMEs with lean HR teams. The HR sector needs practical and scalable support.

HR must shift from transactional delivery to strategic stewardship of human-AI work. I propose five priorities to further strengthen HR capabilities.

First, move from a static role descriptions and skills to a dynamic skills taxonomy. The Skills Framework for 38 sectors is useful, but static. We should pilot AI-driven taxonomies that continuously map and update skills in real-time, giving SMEs a forward-looking baseline, rather than hire reactively based on a static list of skills. In fact, there are global companies that are developing such AI-solutions. The Government could fund the development of dynamic skills taxonomies for prioritised sectors, starting with our HR sector.

Second, adopt skills-based workforce planning and scenario modelling. Instead of focusing on headcount and budgets, we should support tools and advisory services that enable HR to model multiple future scenarios, anticipate role changes and plan redeployment and reskilling proactively.

Third, reframe "job redesign" as job redesign for human with AI. This is not incremental tweaking of jobs given automation. We must use design thinking to integrate AI with human judgement, empathy and creativity. The Ministry can fund playbooks and pilots to test new role models and measure outcomes.

Fourth, scale people analytics and predictive decision support. HR needs data literacy, analytics tools and predictive models for turnaround and internal mobility. Subsidies for analytic tools and targeted training will help HR teams make evidence-based redeployment and retention decisions.

Fifth, make HR a key steward of AI ethics, transparency and trust. Employers should disclose where AI is used in high impact decisions, consult workers before scaling automation and implement human review gates and fairness audits. HR can take the lead in ensuring these safeguards.

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Chairman, with rapid change and in a talent-scare economy, companies struggle to attract, develop and retain talent. Workers cannot face these changes alone. Strengthening HR capabilities is essential to help companies thrive and support Singaporeans through their multistage careers.

Lower-wage Workers and Inclusive Workplace

Ms Yeo Wan Ling: A merit-based workplace must give workers confidence that they have a future in a transforming economy. PWM has made important strides in raising wages for our lower-wage workers. PWCS has supported both workers and employers through this adjustment. We thank the Ministry for extending PWCS for another two years and note that PWCS, in its present form, was meant to be transitional.

But in an era of AI disruption and given our structural limits on workforce expansion, productivity growth must increasingly come from upgrading jobs, not simply adding manpower. This makes our lower-wage workers more exposed to displacement risks if transformation outpaces reskilling.

Could we therefore consider strengthening PWCS into a more sustained worker-support mechanism, one that helps SMEs upskill their lower-wage workers and move them into more productive roles, with structured career progression pathways and negotiated wage ladder increments?

Progressive Wage Credit Scheme

Mr Pritam Singh: An important policy intent behind the PWCS, introduced in 2022, was to serve as transitional support to help businesses defray their costs of raising the incomes of lower-wage workers. In its initial two years, it was reported that the PWCS helped over 90,000 employers and supported wage increases for more than half a million lower-wage workers with payouts totalling approximately $2.7 billion by early 2025.

Critically and for the purposes of my cut, the scheme was not conceived merely as wage support. MOM expected employers to use the transitional period to upskill their employees, transform their businesses and improve productivity so that wage increases for workers will be sustainable over the longer term.

The PWCS scheme has since been extended to 2028 by this year's Budget. Given this, what has been the report card on qualifying employers insofar as their upscaling initiatives, business transformation and productivity improvements are concerned? Has the MOM followed up with employers to assess whether the PWCS has meaningfully shifted the needle on these three areas that were tied to the PWCS? It cannot be the case that there is no report back to Parliament on the outcomes these subsidies have achieved.

A policy review could also reveal the important gaps to assist future policymaking with regard to manpower levies and quotas and whether they should be adjusted, for instance, identifying sectors where upscaling of business transformation has reached a practical limit given current technology. Conservancy cleaning in the HDB setting is a case in point. Productivity improvements in this sector are marginal, and robotics has not advanced to a point where machines can sweep common corridors across different floors and independently negotiate staircases at a commercially viable price point.

With assistance through the PWCS scheme running into the billions of dollars, Parliament must be expected to track the policy impact of this initiative and to determine whether further extensions are warranted. And, if so, whether expected business outcomes should be imposed to ensure that taxpayers' subsidies deliver for both businesses and workers.

In the alternative, if the intention is simply to support businesses without strings attached, so as to force wages up at the lower end, then that should be communicated as such rather than to seek outcomes which for some employers may simply not be realistic.

Supporting Caregivers

Ms Mariam Jaafar (Sembawang): Adult caregivers are the invisible backbone of our society. They care for ageing parents, chronically ill spouses, children with rare conditions and family members in need. They do this quietly, faithfully, often at great personal cost.

My Woodlands resident, Mdm A, spends about 12 hours a day caring for her elderly parents and aunt. She has not had a full night's sleep in months. She told me she feels isolated, guilty and trapped and yet, she continues, because the family depends on her.

Caregiving often reduces working hours. It slows wage growth. It delays promotions. It sometimes forces caregivers to leave the workforce altogether. And yet, when their responsibilities ease, returning to work is not simple, especially after years away. Skills become outdated. Confidence dips. Employers hesitate. Opportunities shrink.

But these sacrifices are not just personal. They ripple across generations. When parents are stretched thin, children may receive less attention. Those in lower-income households may receive fewer enrichment opportunities and reduced exposure to pathways that expand social mobility. Today's caregiving responsibilities can quietly shape tomorrow's inequalities.

I welcome enhancements to the Caregivers Training Grant and the Home Caregiving Grant. But much more can be done to better understand and alleviate the intergenerational impact. Can the Minister share what evidence exists on the intergenerational impact of caregiving?

I believe we must go further in three areas: relief, retention and re-entry.

First, relief. Can we expand practical respite and navigation support. How can we reduce the social isolation they face? How can we ensure their children do not miss out? Second, retention. Can we strengthen incentives for flexible work arrangements and provide structured coaching at key transition points, so caregivers do not have to choose between career and care. Third, re-entry. Can we create structured return pathways so that stepping up for family does not mean stepping back professionally.

Supporting caregivers is not charity. If caregivers thrive, their children thrive.

When Eldercare Becomes a Challenge

Mr Abdul Muhaimin Abdul Malik (Sengkang): Sir, we often speak about Singapore's ageing population as a demographic challenge. Today, I want to reframe it as a workforce challenge, one unfolding quietly in our workplaces right now.

Many colleagues are part of the sandwiched generation, managing ageing parents while holding full-time jobs. The numbers tell the story.

In 2024, 87,100 residents were outside the labour force due to caregiving, 86% of them women. Nearly half are in their prime working years, ages 40 to 59. These exits do not show up as unemployment but represent a massive loss of experienced talent. This is not temporary. Singapore's ageing population means eldercare responsibilities will only grow. Yet our policy focus remains unbalanced. We have made tremendous progress supporting working parents. It is time we extend similar support to caregivers.

Workers age 40 to 59, our most experienced professionals, are stepping back not by choice but because they lack structured workplace support. We are losing productivity and institutional knowledge when we can least afford it.

Current measures help caregivers after they have left the workforce through reskilling programmes and re-entry support. While valuable, this is reactive. We need proactive workplace support that prevents exits.

The Workers' Party proposes family care leave modelled after childcare leave. Employees with caregiving responsibilities should receive six days annually, three employer-paid and three Government-paid. Those with multiple care recipients would receive two additional leaves.

The recent Tripartite Guidelines on FWA requests are a start, but we need employer frameworks that make eldercare support standard practice, not discretionary. We must normalise eldercare conversations, just as we have normalised childcare discussions. Start with data collection to understand the scale, pilot workplace frameworks with willing employers, develop realistic best practises across sectors.

Research shows employees who balance work with caregiving face higher stress and reduced productivity. Supporting them through structured leave can improve well-being while paying it for itself through better retention and productivity.

Yes, we have re-entry programmes. Yes, we have flexible work guidelines. But let us be honest. By the time someone needs reskilling to re-enter the workforce, we have already lost years of their contribution. Prevention is better than cure. Supporting eldercare is not just a compassionate policy. It is smart economic policy. We cannot afford to lose 87,000 workers, many in their most productive years, to a challenge we have simply chosen not to address proactively. The question is not whether we can afford to act. It is whether we can afford not to.

Senior Employability

Mr Sanjeev Kumar Tiwari: Mr Chairman, our senior employees aged 50 and up bring deep domain knowledge and hard-earned experience. However, as Singapore moves into a super-aged society, while navigating significant economic restructuring, we must ensure our policies continue to work better for both senior workers and employers.

I thank the Government for answering NTUC and the union's calls to progressively raise the statutory retirement and re-employment ages to 65 and 70 respectively by 2030. This has improved labour force participation of those in the ages of 55 to 64, from 69% in 2015 to 73% in 2025. It enabled more workers to attain the Basic Retirement Sum from six in 10 in 2016, to seven in 10 in 2022, and I am glad that CPF has projected eight in 10 will attain this by 2027.

However, senior workers find themselves increasingly juggling caregiving and wishing for more work options, so they can strike a better balance between work and life. Can the Ministry provide an update on what is being done to enable more work options and expand the availability of FWAs?

At the same time, many senior workers and jobseekers who are 10 to 15 years away from the statutory retirement age worry about ageism and displacement amid rapid technological changes in their workplaces. Many senior workers and jobseekers have told us that there are fewer opportunities for career advancement and good jobs later in their career. Younger cohorts are also convinced that this is the case. Others have shared that while they are willing to upskill and learn, their long work hours, caregiving duties after work, unfamiliar learning formats and the uncertainty of translating these to better work prospects are also practical barriers. Can the Ministry share how it plans to intervene at mid-career stage to boost continued employability for workers before they reach their late-50s?

I therefore welcome the announcement of the extension of the Senior Employment Credit (SEC) scheme to 2027, to continue supporting hiring or/and retaining of senior workers. This sends an important signal to firms that senior workers remain valued contributors and provides some cost relief that is especially important for SMEs amid the hyper-competitive business environment. Will the Ministry considering extending this SEC beyond the end of the 2027 review?

Making Flexible Work Arrangements work

Ms Eileen Chong Pei Shan: Sir, the continued decline of our total fertility rate (TFR) to a new low of 0.87 in 2025 is the clearest signal yet that financial incentives alone have not and will not move the needle. They are important, but they do not address a key concern of younger Singaporeans, like myself, which I had raised in Budget debate last week, that we will not have the time or energy to be present parents. For many of us, the structure of working life in Singapore makes parenthood feel like a compromise, not a choice.

Last week, Minister Indranee called for a society-wide reset on how we view and support marriage and parenthood. I hope the Government will lead by example with the reset, beginning with a new lever – time, specifically to move from intention to impact on flexible work arrangements.

The current tripartite guidelines give employees a right to request and a process for consideration, but do not govern outcomes. The enforcement mechanism, when that process is not followed, is for an employee to approach the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP). We should not underestimate what approaching TAFEP costs an employee relationally. It creates tension. It risks being seen as difficult.

I had filed a Parliamentary Question to ask how many complaints TAFEP had received on the improper handling of such requests since the guidelines took effect in December 2024. The answer, one; and it was a case about the format in which the rejection was communicated, not the substance of a rejection.

Sir, I do not believe this means that the guidelines are working perfectly. I believe it means that they are not being used. One complaint is not a sign of success. It is a sign of a barrier too high to clear. While legislation alone cannot change workplace culture, it can set a floor. It can signal that the Government is serious about the mindset reset to support Singaporeans in building and growing their families.

As a starting point, I have two suggestions.

First, move the frameworks from guidelines to legislation with statutory force. This means making non-compliance actionable. An employer who fails to engage properly or who rejects a request without genuine business grounds, should face consequences. Second, make flexible work a presumptive right for parents of children under three, where the nature of the job allows, not absolute or unconditional, just the starting position that an employer has to justify departing from, rather than a benefit that an employee must request.

Senior Employment

Ms Mariam Jaafar: Sir, in Woodlands, I meet seniors in their 60s and 70s who tell me, “I want to keep working, but I need work that works for me.” With longer health spans, many seniors want to work. Some need to work. And yet, many struggle. I welcome the extension of the Senior Employment Credit (SEC) and the Central Provident Fund (CPF) Transition Offset, but they are not enough.

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Many seniors struggle with a skills mismatch. Training grants exist, but too often they feel one-size-fits-all. One 72-year-old man told me: “They keep pushing me to AI courses, but that is too far a stretch for me. It will not help me actually get a job.” Other seniors face physically demanding roles or inflexible workspaces. Offices, factories and retail spaces are often designed for the young and able bodied. Meaningful part-time or flexible roles are scarce. Many do odd jobs, which provide neither security nor opportunity to contribute their expertise and experience.

So, I ask the Minister, can we give seniors tailored training that actually fits their capabilities and abilities, and dedicated support to place them in jobs that actually fit their lives? Can we help seniors better navigate SkillsFuture course options so they can actually use their credits?

Can we redesign workplaces, especially for small and medium enterprises (SMEs) in sectors like retail, logistics and services to be more senior friendly? Can we redesign work itself? Lighter duties, flexible hours, assistive tools, mentor-type positions, so experience is valued as much as energy? Can we give grants and tax incentives for businesses that make all this possible? These interventions complement, not replace, existing wage support schemes. If we want seniors to remain independent, we must redesign work, not just subsidise it.

I also note the extension of the part-time re-employment grant. Could MOM share the uptake and outcomes so far? And could we expand practical models so seniors can pace themselves while staying engaged? And with the Tripartite Workgroup on senior employment, when can we expect key recommendations, and how will success, beyond placements, be tracked?

Let us ensure our seniors do not just live longer, they thrive. Let us ensure they do not just earn a living, they contribute, mentor and lead. Let us ensure they do not just survive, they succeed. Because when seniors succeed, Singapore succeeds.

The Chairman: Ms Diana Pang, kindly deliver your two cuts together.

Tripartite Workgroup on Flexible Work Arrangements

Ms Diana Pang Li Yen (Marine Parade-Braddell Heights): Chairman, the Tripartite Guidelines on flexible work arrangement requests are important because they set clear norms on how employees should request flexible work and how employers should assess these requests. This clarity reduces misunderstanding, builds confidence and encourages constructive and mature workplace dialogue.

For employees, the benefit is practical. These guidelines promote work-life balance and provide a clear, structured pathway to request flexibility in where they work, when they work, or the workload they take on. This is especially important for parents, caregivers and those managing health conditions, enabling them to remain economically active while meeting family and personal responsibilities.

For employers, the guidelines introduce discipline and transparency. Employers are expected to respond in writing, and where requests are rejected, to explain clearly based on business needs. This reduces speculation, limits perceptions of bias, and strengthens trust and workplace harmony.

Chairman, I support the thrust of these guidelines. But I ask MOM to recognise a simple ground reality: not all employers, especially SMEs, have the capacity, manpower, human resources (HR) expertise to implement this formal flexible work arrangement (FWA) workflows effectively.

While the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) provide grants, templates, training and advisory services, real operational challenges remain. If unaddressed, these guidelines risk becoming compliance issues rather than substance, particularly for SMEs.

On the ground, SMEs face five key pain points.

First, manpower constraints, with small teams lacking dedicated HR capacity. Second, management constrain on supervisors as they have to handle both hybrid and staggered work schedules of their team. Third, performance and fairness concerns, including tracking output, fears of misuse and perceptions of inequality. Fourth, higher operational costs, such as information technology investments and extra manpower for shift cover. Fifth, operational and contractual constraints, especially in sectors such as food and beverage (F&B), retail, security, where physical presence is essential.

Chairman, if we want a fair and inclusive workplace, they must also be sustainable for the employers. For without employers, there are no employees, vice versa. As we strengthen worker protections, we must equally strengthen support for SMEs to implement these guidelines in a practical, proportionate and business-viable way.

Supporting Workers and Inclusive Workplace

Chairman, I will now speak on the importance of building a safe, inclusive and fair workplace for the employment of people with disabilities, women and caregivers.

First, we must strengthen protection against workplace discrimination and harassment, including bullying that is often subtle and not immediately visible. All employers want a safe and respectful workplace, but many SMEs struggle with policy design, complaint handling, documentation, deciding on appropriate responses, especially without in-house HR expertise.

Bullying is not always obvious. It can take the form of verbal intimidation, gaslighting, passive aggression, repeated put-downs, hostile tone, public shaming, deliberate exclusion, or constantly shifting expectations. These behaviours may leave little paper trail on the outcast, but over time they erode trust, undermine psychological safety and drive attrition, which is a lose-lose outcome for both employees and employers.

Protections must therefore be real, accessible and consistently applied, but we should not assume that employers are always the wrongdoers. Sometimes, the misconduct comes from fellow employees as well. This system should help employers intervene early, guide them on proper complaint handling, and provide workers with a safe, trusted channel to report concerns.

Second, inclusive employment for persons with disabilities, women, and caregivers is both a social good and make economical sense, especially in a tight labour market. Strong support frameworks can help these groups fulfil their care-giving aspirations and maximise their contributions.

But for inclusion to work, we must look beyond the employee barriers and also consider employers' capacity to implement it. For SMEs, inclusive hiring can bring sudden operational costs, job redesign, additional supervision, workflow adjustments, training, managing healthcare and well-being concerns. If we want inclusive hiring to be sustainable, employers must be supported, not overwhelmed.

Finally, fair and merit-based workplace matters. Fairness means wider opportunity, reduced biasness and progression based on performance and potential, but fairness must also be sustainable. Inclusive policies, flexible arrangements and stronger protections will succeed only if they are credible to workers and workable for the employers. Many SME bosses operate under immense pressure, paying off staff before paying themselves, managing cashflow risks, meeting compliance requirements and carrying all the emotional burden of keeping their businesses alive.

Ultimately, a fair workplace cannot exist without the wellbeing of both the employers and the workers. It must work on both sides. Chairman, sometime in mid-2025, a salad shop owner tragically passed away after an alleged fraudulent work injury claim that was filed against her. MOM is investigating. But even so, one death is one too many. This reminds us that employer mental well-being also matters.

With this in mind, I offer four suggestions to the Minister.

First, MOM could provide practical guidelines and support to help SMEs recognise and address subtle workplace bullying, including providing clear examples and model policies which can be easily implemented.

Second, MOM can develop and publish simple, proportionate investigation protocols and tools that SMEs can use to handle complaints involving discrimination, bullying and harassment.

Third, MOM could maybe help employers, especially SMEs, to formulate inclusive employment schemes into day-to-day workable processes, so that support for persons with disabilities, women and caregivers can become operationally realistic.

Fourth, MOM could consider consolidating employer support schemes and guidelines into a single, user-friendly platform, similar to what we have: SupportGoWhere, so SMEs can quickly understand what they qualify for and how to implement this support without heavy reliance on consultants or even middlemen.

Chairman, I hope the Minister will consider the issues I have raised.

Promoting Safer and Healthier Workplaces

Mr Melvin Yong Yik Chye: Mr Chairman, workplace safety is not a statistic, it is about lives, families and futures. I am encouraged that the workplace fatal injury rate for 2025 has fallen to 0.96 per 100,000 workers, down from 1.2 in 2024. This reflects the sustained efforts of workers, employers and the Government.

But every life lost at work is one too many. Improvements must not lead to complacency. We must now take the next decisive steps.

First, workplace safety and health (WSH) must evolve to reflect our ageing workforce. As retirement and re-employment ages rise, longer careers must also be safer careers. Risks such as falls, musculoskeletal disorders and fatigue cut across all industries, not just traditionally high-risk sectors.

Employers must go beyond compliance. They should redesign jobs, automate hazardous tasks and eliminate risks at the source. Safer work design must become the norm, not the exception. Where safety technology has been proven to reduce accidents, adoption should not remain voluntary. In high-risk sectors, MOM should move towards mandating technologies such as anti-collision systems, video analytics to detect unsafe acts, and fatigue detection tools. If these technologies save lives, we should require their use.

Government can also do more to drive change. Public procurement policies should reward companies with strong WSH records and clear investments in risk elimination and job redesign.

Second, fatigue must be treated as a core safety issue. Guidelines are a good start, but guidelines alone are insufficient. MOM should strengthen safeguards on working hours and rest periods, and require employers to implement formal fatigue risk management systems.

Finally, we must continue raising standards for migrant worker welfare. While I welcome the enhanced dormitory standards, dormitories should be better integrated with surrounding communities, with accessible healthcare, recreation and essential amenities closer to where the workers live.

Sir, workplace safety and worker welfare are not compliance exercises. They are commitments to dignity, responsibility and fairness. If we know what works, we must mandate it. If we see what harms, we must redesign it. And if we set standards, we must enforce them, because every worker deserves a safe and healthy workplace.

Ms Yeo Wan Ling: While workplace issues have been closely examined, we must not forget the living conditions of our hardworking migrant workers. Many spend most of their time between dormitories and worksites, with limited opportunities to relax, socialise, or build community.

Prolonged separation from families can also affect emotional well-being and heighten isolation. I acknowledge the Ministry's efforts to improve our dormitory standards.

The partnership between MOM, the National Trades Union Congress (NTUC) and our Migrant Workers' Centre in managing recreational centres is a step in the right direction. These centres provide recreation, community activities and essential services such as groceries, remittance and telecommunications, serving thousands weekly.

Beyond this, I call on the Ministry to continue investing in measures that strengthen our migrant workers' access to amenities and community spaces, ensuring that our migrant workers' living environment supports wellbeing, dignity and of course, social integration.

The Chairman: Minister Dr Tan See Leng.

The Minister for Manpower (Dr Tan See Leng): Mr Chairman, I would like to take this opportunity to wish everyone a very Happy Chinese Valentine's Day. I thank Members who have spoken in support of our workers and also our employers.

The nature of work is changing rapidly. Geopolitical conflicts, as seen from recent developments over the weekend, are upending the world as we know it and reshaping global trade and investment flows. AI is transforming how we work and our workforce, too, is evolving. This year, Singapore will become a super-aged society.

Even as we seek new growth frontiers, we must ensure that our growth remains inclusive and that it creates meaningful careers for all. We start from a relatively good position today. Despite a challenging global environment, Singapore's labour market remains resilient.

As of December, last year, we have recorded 17 straight quarters of employment growth since we emerged from COVID-19 in 2021. Our resident unemployment rate has remained low at 2.9%. The labour market remained tight in 2025, with more vacancies than jobseekers. Real incomes at the median grew by 8.3% from 2020 to 2025, or about 1.6% per annum. Lower-wage workers saw real incomes grow by 15% from 2020 to 2025, or about 2.8% per annum, faster than the median worker. This was bolstered by productivity improvements and targeted wage support.

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These outcomes reflect our workers and businesses' resilience and contributions, and investments in growth areas, like AI and advanced manufacturing, as well as very good collaboration with our tripartite partners. MOM will continue to walk with workers and businesses, so that every worker, every worker matters and every worker can realise their potential, achieve their career aspirations, and every business can thrive by bringing out the best in their people.

MOM has three priorities this year. Together with our tripartite partners, we will: one, empower Singaporeans to build meaningful careers; two, enable businesses to transform and provide quality jobs; and three, build more inclusive workplaces that leave no one behind.

Let me begin with our first priority, empowering Singaporeans to build meaningful careers throughout life. To our youths, we are committed to giving you a strong start to your careers. Transforming from school to work can be daunting, especially with the angst and anxiety over how AI is changing entry-level jobs.

Fortunately for us, the market for fresh graduates remains resilient, at least for now. Vacancies continue to outnumber jobseekers. Over four in 10 openings are entry-level PMET roles suitable for young graduates. By December 2025, over eight in 10 university graduates from the 2025 cohort had already found employment, and this is comparable to the 2024 cohort.

We will continue to prioritise creating more full-time opportunities for fresh graduates. While vacancies are available, some graduates do indeed face challenges in finding the right match. To support them, we introduced the GRaduate Industry Traineeships (GRIT) scheme last year, alongside GRIT@Gov for the public sector.

GRIT helps our graduates acquire structured, industry-relevant work experience. Over 400 graduates have already embarked on traineeships in the various industries. Employers have told us that GRIT has helped them increase hiring amidst a more cautious environment, and they intend to emplace good performers onto full-time positions. We incentivise employers to do so by continuing subsidies for trainees emplaced during the traineeship period.

Take Ms Jewel Goh and Mr Dominic Wong, two recent graduates who started their traineeships at DBS. Jewel, who has a diploma in Applied AI and Analytics, was given the opportunity to apply what she has learnt to support DBS' technology systems and large-scale operations. Dominic, a Communications graduate, got the chance to develop partnerships with DBS' stakeholders. I am sure that their GRIT experience has given both graduates more clarity and confidence to take their next steps.

GRIT remains open to graduates from the 2025 cohort, and we will extend applications to the 2026 cohort. We are also speeding up applicant onboarding. If market conditions call for it, we may expand capacity.

Several Members have made suggestions on supporting our youths. Mr Gerald Giam suggested introducing wage support for SMEs to hire graduates. Assoc Prof Jamus Lim proposed a national apprenticeship programme to strengthen on-the-job training.

These suggestions are in line with the Government's ongoing efforts. We have been enhancing work-based learning and on-job training through schemes, like the AI Apprenticeship Programme and the SkillsFuture Work-Study Programme (WSP). The WSP has grown significantly and as MOE shared earlier on, the Work-Study Diploma programme will be enhanced in line with the Economic Strategy Review's (ESR's) recommendation to support flexible pathways that blend training and working throughout life. We are also subsidising 70% of traineeship costs through GRIT.

While we will continue to study such suggestions and look into more ways to support our fresh graduates, we should also design our support carefully and sustainably. For example, GRIT sources the traineeships from leading companies in growth areas, ensuring that our graduates gain high quality experiences and stronger long-term prospects. A broad-based wage subsidy for SMEs to hire graduates may not provide the same quality of experience, if companies lack the capacity to train them or provide meaningful careers once the subsidies end. A general subsidy may also entail even more wastage, given that 80% of our graduates have been able to secure jobs within months after graduation without such wage subsidies today.

Additionally, we also have to balance against unintended outcomes, where companies might end up retrenching older workers and replace them with cheaper graduates so that they can save on manpower costs. So, our approach on balance is appropriate for the present situation, where many full-time roles remain available. To help match graduates to such roles, we have stepped up career guidance and employment facilitation efforts through WSG, e2i, and the IHLs.

Beyond this, overseas work stints help and equip Singaporeans with the necessary skills and perspectives for a globalised economy. Since launching in 2024, WSG's Overseas Markets Immersion Programme (OMIP) has already supported more than 120 local professionals to gain overseas experience. Together with other agencies' overseas deployment programmes, over 430 local workers have benefitted as of 2025.

We recognise that our youths have a growing interest in gaining overseas experience. Hence, we will expand OMIP to support young professionals gain overseas exposure even earlier in their careers. Providing early opportunities strengthens our talent pipeline and our companies' global competitiveness. Details will be shared in due course.

Beyond a strong start, we will also ensure that all workers have the resources to thrive throughout their careers. We will do so in four ways: by building an AI-ready workforce; helping workers navigate the labour market with confidence; developing our local professional talent pipeline; and supporting displaced workers.

One of our foremost priorities is to build an AI-ready workforce. A recent report by McKinsey, EDB and Tech in Asia found that about three in five Southeast Asian firms have yet to see meaningful financial gains from AI. This is partly due to a lack of internal expertise and low employee adoption.

We cannot afford to let this gap persist. To translate the potential of AI into good jobs for Singaporeans, we will take decisive steps to build an AI-ready workforce. Like learning a language, developing true fluency in AI comes from consistent use and building confidence through experimentation. Therefore, we will make it easier for Singaporeans to have hands-on experience and access to the latest AI tools.

As announced at Budget, those who take up selected SkillsFuture AI courses will receive free subscriptions to premium versions of best-in-class AI tools for six months. MOM has been engaging providers, such as Google, Manus, Microsoft and OpenAI. We will announce details in due course, including the tools and platforms that qualify.

Assoc Prof Terence Ho suggested for AI access to be extended even more widely, including to mature and lower-income workers. I agree that access should be inclusive, regardless of age or income. Hence, this initiative will be open to all Singaporeans aged 25 and above, and they are paired with practical and accessible training for AI at various levels.

Beyond this, we will continue to explore ways to include more mature and lower-income workers in our national AI journey. While an AI-ready workforce offers significant potential to improve productivity, we must steer AI adoption to enhance our workers' potential, not displace, not replace it. I will elaborate later on our support for employers to do so.

Second, we will help workers better navigate the labour market and seize new opportunities with confidence. To this end, we are fundamentally reviewing our jobs and skills ecosystem, which Ms Gho Sze Kee spoke about earlier.

We have four goals, the four Vs: volume, we want to reach a larger share of the workforce; variety, we want to cater to more diverse needs in a complex job market; velocity, speed, matching people to opportunities more quickly; and value, value add, supporting long-term career health.

To drive these strategic shifts, we are forming a new agency. With your permission, Mr Chairman sir, may I ask the Clerks to distribute a handout detailing our efforts to support Singaporeans' career journey. Members may also access these materials through the MP@SGPARL App.

The Chairman: Please proceed. [A handout was distributed to hon Members.]

Dr Tan See Leng: Thank you. I will continue.

As we have heard from the Prime Minister, SkillsFuture Singapore and Workforce Singapore will merge into Workforce and Skills Singapore (WSSG), a new statutory board under MOM and jointly overseen with MOE. It will be established in the third quarter of 2026, helmed by Dilys Boey, who is the current Chief Executive of WSG. Its mission will be to empower Singaporeans to develop future-ready skills and access good job opportunities; enable businesses to create good jobs for Singaporeans and develop their workforce; and promote a culture of lifelong learning and career health.

Secretary-General Mr Ng Chee Meng asked how this merger will benefit Singaporean workers, and how we will better translate training into employment and productivity gains. Ms Eileen Chong said that the new agency should not just support workers, but also employers, to take forward SSG's ongoing efforts in encouraging skills-first hiring.

Today, our skills and employment facilitation capabilities sit in separate agencies. Bringing them together under one roof creates a single, powerful engine for human capital development. It will collaborate with other agencies and stakeholders to benefit both workers and employers.

For workers, this means simpler access and more integrated career support in a fast-changing marketplace. It means a single portal to access training, career guidance and job opportunities, without having to navigate multiple agencies. By combining career and skills data, we can give you a clearer picture of where opportunities are, enabling better-informed career and training decisions.

For the employers, the merger will help us be even more responsive to your talent needs. With more timely and comprehensive labour market and skills insights, WSSG can help to reduce skills mismatches and time-to-hire. Creating a single point of contact will also simplify how we support businesses to address hiring, training and workforce transformation needs.

WSSG will play a critical role in expanding the career health movement, going beyond reactive job matching, to proactive career planning. As outlined in the handout distributed to Members, we have initiatives targeting both workers and employers.

For workers, we launched Career Health SG last year with a fundamental message – stay proactive, pre-emptive about your career. The response has been encouraging thus far. Nearly two-thirds of our workers now see value in improving their career health. But there is more to be done. Many are still unsure as to how to begin.

So, starting on your career health journey does not have to be that overwhelming. We have been building practical tools to help our fellow Singaporeans. The Careers and Skills Passport (CSP) lets you take stock of your skills, and CareersFinder helps you to discover the job options that you may not have even considered. For those who need even more personalised support, we have expanded access to career planning programmes. Almost nine in 10 respondents reported having clear direction and greater confidence after attending such programmes.

These tools have delivered positive outcomes. Following the integration of CSP with job portals, JobStreet and FastJobs, our partners found that job applications with verified credentials are 1.5 times more likely to be shortlisted by employers. We are expanding our CSP partnerships to five more job portals – MyCareersFuture, Careers@Gov, EASE, FindSGJobs and eFinancialCareers. We have also integrated CSP with HR tech firm JobTech's platform, enabling employers to search for candidates based on verified skills data.

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For employers, tools, like TalentTrack and TalentTrack+, can help you better assess your workforce readiness and identify internal talent for new roles.

In total, our tools and initiatives have already helped over 800,000 individuals and 38,000 firms.

Through WSSG, we will also strengthen our ecosystem of career and employment service providers to serve different workforce segments more effectively. As our workforce evolves, new forms of career support are needed – some of which can be delivered effectively through private service providers specialising in certain industries, certain sectors or workforce segments.

For example, WSG has partnered Ingeus and AKG, two private job matching firms, to provide more specialised support for PMEs since 2017. We have observed higher re-entry rates among those assisted, compared to retrenched residents in general.

To take this further, we convened the Alliance for Action on Advancing Career and Employment Services (AfA-ACES). Under this workgroup, we will launch nine pilots with private sector partners to test new services, covering a range of individual and employer segments. For example, for the individuals, for fresh graduates, we will test services combining career guidance and industry exposure to support your school-to-work transition. For mid-level professionals, we will pilot personalised career agents to help you move into better roles. For caregivers, seniors and those facing greater hardship, we will explore new ways to support you to work more flexibly, or better still, get you to return to work. For SMEs, we will test ways to support your own internal mobility and also perhaps, suggest to you, adopt new work models.

The workgroup will release its recommendations in the second half of this year.

These efforts will also help address concerns about underemployment, which Mr Patrick Tay had requested updates on. MOM has been studying underemployment in the form of overqualification, where workers possess higher educational qualifications than typically required for the job. Preliminarily, we found that most overqualified workers in Singapore took up their current jobs voluntarily, for reasons such as flexibility or planned career transitions.

The share of involuntarily overqualified workers remains small and stable. Our efforts to strengthen the career and employment ecosystem will better support these workers to find jobs more aligned with their aspirations or develop the skills to enter such jobs. We will release detailed findings later in the year.

Third, for Singaporeans who aspire to leadership positions, we will help you develop the skills to do so. In the past year, we have expanded the capacity, the uptake of our professional development programmes. With the support from the Economic Development Board (EDB), the Singapore Leaders Network run by the Human Capital Leadership Institute has grown to over 4,000 members, with new and expanded offerings. This includes the Overseas Transition Support programme, which has supported already about 120 professionals.

Finally, as the economy evolves, some Singaporeans will inevitably find their jobs changing or coming to an end. But at the same time, I want to reassure you, new opportunities will arise, and we will help you to seize them.

Last year, we launched the SkillsFuture Jobseeker Support (JS) scheme, which provides temporary financial relief and job search support to involuntarily unemployed individuals, helping them regain their footing and return to work with confidence. The scheme has made a difference for many Singaporeans, but we can do more. Just as what Secretary-General Mr Ng Chee Meng and Mr Patrick Tay have suggested, expanding the scheme’s coverage beyond the current qualifying income cap. The JS scheme has been in place for about less than a year, we are reviewing the scheme and its parameters when we have more experience. So, we will ask for your indulgence and patience in supporting us through this journey. Senior Minister of State Koh Poh Koon will provide further updates on the scheme.

Let me now turn to the later stages of one’s career. As Singaporeans lead longer and healthier lives, we must shift from managing the pressures of ageing, to unlocking the benefits of career longevity. As previously announced, we will raise the retirement and the re-employment ages to 64 and 69 respectively on 1 July 2026, and this will keep us on track to raising them to 65 and 70 before 2030. This will give our seniors more flexibility and assurance, while enabling employers to retain experienced workers.

Beyond how long we work, we must also transform how effectively we work by creating more flexible and varied pathways for seniors to remain engaged and productive.

The Tripartite Workgroup on Senior Employment (TWG-SE) is studying a more integrated approach to support career longevity, including enabling individuals to plan earlier for later-stage career transitions, and equipping employers to design age-friendly jobs and workplaces. Senior Minister of State Koh Poh Koon will share more about these initiatives.

In the interim, we will extend the Senior Employment Credit until December 2027 to continue supporting employers hiring senior workers.

At the same time, we will continue to strengthen our retirement adequacy policies to give our seniors greater assurance. We have been enhancing the CPF system over the last few years, providing Singaporeans with more support. This has only been possible because of our strong social compact and belief in shared responsibility between individuals, families, employers and the Government. We will continue to stay this course.

As announced, we will increase CPF contribution rates in 2027 for senior workers by 1.5 percentage-points for workers aged above 55 to 60, and one percentage-point for workers aged above 60 to 65. This will better support retirement adequacy for seniors who wish and want to take the option to continue working.

With this, we have reached the target contribution rates for senior workers aged above 60 to 65, as recommended by the Tripartite Workgroup on Older Workers. We will extend the CPF Transition Offset for another year to help cushion half of the increase in employer CPF contributions.

Later this year, we will also announce the new retirement sums for cohorts beyond 2027, to allow members to better plan ahead. With rising living standards, the new retirement sums will better reflect the savings needed to meet basic retirement needs in the future.

For seniors who may face challenges in building up enough savings despite their best efforts, we are committed to support you. As announced, we will provide a CPF top-up of up to $1,500 for eligible Singaporeans aged 50 and above, with CPF balances below the prevailing Basic Retirement Sum. The top-up will be automatically credited this year.

Finally, we will provide more choices within the CPF system for Singaporeans to grow their retirement savings.

Today, the CPF system offers risk-free interest of up to 6%. Members seeking potentially higher returns can invest through the CPF Investment Scheme (CPFIS), which has around 700 products available. However, this requires financial knowledge and active investment management.

As the Prime Minister announced, the CPF Board will introduce a new investment scheme, with life-cycle investment products that will automatically shift to lower-risk assets via a glide-path, as the investor grows older. This helps to calibrate exposure to investment risk at different life stages and it mitigates market downturn risk when it is time to exit.

To keep choices simple, we will curate to two to three reputable commercial providers offering a small number of options. To Mr Saktiandi Supaat’s question on product provider selection, the applications will be rigorously evaluated by independent investment consultants appointed by the CPF Board, covering investment capability and track record, amongst others. We will cap all-in fees to keep costs low and are prepared to provide some time-limited support to interested members.

We agree with Mr Saktiandi Supaat that for many Singaporeans, especially older workers and those prioritising certainty, the CPF risk-free returns remain highly attractive. Not everyone has the appetite for investment risk. Hence, this new scheme will be voluntary.

Members who prefer to actively manage their own investments can continue to invest their Ordinary and Special Account balances via the CPFIS. Members can also opt to retain their savings in their CPF accounts to continue earning risk-free returns.

We agree with Mr Shawn Loh, with Mr Sanjeev Kumar Tiwari and Mr Saktiandi Supaat that investor literacy is key. Members must understand the products and their risks, and decide the most suitable option for themselves. We will work with the selected product providers and partners, including the Monetary Authority of Singapore (MAS) to enhance investor education.

I also want to thank our Members for their suggestions on product design, such as on cooling-off windows, the target date and encouraging retention. We will consider them as we further engage the industry. We target to launch the new scheme in the first half of 2028, but of course, if we can do so earlier, we will. More details will be announced in due course.

Let me move to our second priority, which is enabling businesses to thrive and create good jobs for Singaporeans in a changed landscape. Ms Yeo Wan Ling requested an update on how we will refresh our foreign workforce policies to generate growth and good jobs for Singaporeans, while recognising the limits to which we can keep growing our foreign workforce.

Thriving businesses are the engine of good jobs. Before joining the Government, I was in the private sector all my life, so I can understand the angst faced by private entrepreneurs and business owners. Thriving business, they are engines of good jobs, rising wages and they continue to sustain opportunities for Singapore. In a fast-changing global environment and under tighter resource constraints, businesses can only thrive by continuously transforming their business models and investing in their workforce. Therefore, enabling business transformation remains central to our foreign workforce strategy.

We will continue to remain globally connected and open to talent that can complement our skilled local workforce, while reducing reliance on foreign labour where there is scope to raise productivity. We will make further enhancements to our foreign workforce policies in line with this approach.

First, we will continue to compete globally for top-tier talent. Since the launch of the Overseas Networks and Expertise (ONE) Pass for pinnacle talent in 2023, there has been healthy growth in take-up. Currently, over 8,000 individuals are on the ONE Pass, and many of them contribute to sectors which are critical to our future economy.

Take Dr Anders Jacobsen Skanderup. He is an Assistant Director at the A*STAR Genome Institute of Singapore. He developed Fragle, which is a novel AI-based method to monitor cancer progression and relapse through blood tests. Or Mr Oliver Jay, Managing Director at OpenAI, whose experience in bridging Silicon Valley and Asia supports Singapore’s ambitions as a leading AI hub. Previously Mr Jay spent two years mentoring Singaporean leaders in high-growth Singapore companies such as Carousell and Glints.

To strengthen our attractiveness to top talent in critical and emerging technologies like AI and quantum computing, we will introduce a new ONE Pass AI and Tech track in January 2027. This will replace the Tech.Pass and offering more attractive terms than the Tech.Pass.

Second, we must stay open to skills and expertise from abroad while ensuring they continue to complement our local workforce.

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Our Employment and S Pass Qualifying Salaries are regularly updated to keep pace, they are keeping pace with local wage benchmarks – they do not lead the local wage benchmarks – so that it ensures that foreigners who come here do not compete mainly based on accepting lower salaries.

As announced, we will raise the EP minimum qualifying salary from $5,600 to $6,000, in line with the wages of the top one-third of local PMETs. This will apply to new EP applications from 1 January 2027 and the renewals from 1 January 2028, to give employers time to adjust.

Beyond meeting the qualifying salary, EP applicants must also pass COMPASS. Mr Patrick Tay requested an update on how our COMPASS framework incentivises firms to improve their workforce profile.

Since implementation about two-and-a-half years ago, in 2023, about two-thirds of the current EP holders have passed through COMPASS. Results suggest that we are moving in the right direction. The share of firms with higher dependence on foreigners of a single nationality has decreased by 20%, while the share of firms with a higher dependence on foreigners in general has decreased by 37%.

For the S Pass, we will continue to raise the minimum qualifying salary in line with wages of the top one-third of our local associate professionals and technicians (APTs).

In the first step, we will raise the minimum qualifying salary from $3,300 to $3,600. This will apply to new applications and renewals from 1 January 2027 and 2028 respectively. By around 2030, if the economy continues to grow, the S Pass minimum qualifying salary is expected to be around $4,000 to $4,500. Of course, like I said, the caveat is it depends on our prevailing local wages and the prevailing economic conditions then.

With an ageing local workforce, Singapore needs Work Permit Holders to deliver essential infrastructure, goods and services.

Our Work Permit numbers in the construction sector have grown by 36% over the past five years, as we catch up on important projects post-COVID-19. Across all sectors, Work Permit numbers have grown by 186,000, or 27%. So, we agree with Ms Yeo Wan Ling that our Work Permit growth must be sustainable, given our infrastructural and social constraints. Our businesses must operate more efficiently by adopting technology and redesigning jobs. And we have grants to help companies to do that.

So, even as we manage numbers, we will continue to support businesses in accessing higher quality, the key thing is higher quality, Work Permit holders. To this end, we will make two enhancements to our Work Permit framework.

First, we will streamline our Work Permit levy framework to make it easier for businesses to understand, and they can plan how they hire, how they can train and how they can retain the Work Permit holders. Over the decades, our levy framework has evolved to comprise 24 different rates and different tiers. We will start by reducing the number of rates from 24 to 20 and we will progressively streamline this further over time.

So, for the Marine Shipyard and Process sectors, we will work towards aligning the levy rates with Construction. For a start, we will raise the levies for basic-skilled workers by $100 and $150 respectively. This is set to incentivise companies to hire higher-skilled workers. So, our exhortation is for companies to bring in higher-skilled workers, retain them and train them well.

For the Manufacturing and Services sectors, we will combine the bottom two tiers. For this new combined tier, the levy rates for the Higher- and Basic-skilled workers will be $300 and $470 respectively for Manufacturing; and $400 and $600 respectively for Services. So, please take note. The higher-skilled workers will enjoy a lower levy compared to the relatively unskilled workers.

So, we will retain existing levy rates for the highest tier, so that firms with a higher reliance on Work Permit holders will continue to pay higher rates because we hope that they can work with us to redesign, to improve and transform their work processes to achieve higher productivity.

This revised levy schedule will take effect from 2028. We are giving a heads-up in advance so that companies can plan for it. MOM will work closely with industries to strengthen the framework for identifying higher-skilled workers eligible for lower levies in each sector.

Second, we will add eight new occupations to the Non-Traditional Source Occupation List (NTS-OL) from September 2026, in the areas of food services, social services and air transportation. The NTS-OL allows businesses to hire higher-quality non-PMET workers from non-traditional source countries for specific roles with not enough locals.

Mr Mark Lee shared the challenges of domestic-oriented sectors that operate on thin margins and rely on S Pass holders for frontline roles, such as F&B. With the upcoming expansion of the NTS-OL to include four more F&B roles, including frontline waiters, businesses can retain these workers who may not meet the higher S Pass qualifying salary.

Both Mr Mark Lee and Mr Shawn Loh raised an important point. We need to be pro-worker and we need to be pro-business. They have asked how MOM considers sector needs and business costs when calibrating our policies.

Our policy changes are developed in close consultation with sector agencies and with industry partners. Where essential or strategic areas have limited scope for automation or localisation, MOM works with sector agencies to provide targeted foreign manpower flexibilities, calibrated to avoid entrenching labour-intensive business models. We closely monitor business cost increases, keeping in mind Singapore's continued ability to attract investments and talent.

Between 2019 and 2025, profit rates in Singapore grew by 4.4% per year, indicating that businesses have been improving profitability alongside cost increases. Singapore was also ranked the most talent-competitive economy in the 2025 Global Talent Competitiveness Index.

In addition, we are ramping up business cost support measures through targeted wage credit schemes, which Senior Minister of State Koh and Minister of State Dinesh will elaborate on further later. We understand that businesses need time to shift towards more productive models and, therefore, we announced, ahead of time, we implement changes at a measured pace and phased out approach.

As businesses transform, jobs will also evolve. To succeed, firms must invest in developing their workers to take on new and redesigned jobs.

As announced last year, the Government has set aside over $400 million for the Enterprise Workforce Transformation Package (EWTP). Working with Singapore Business Federation (SBF) and SNEF, the scheme aims to strengthen the link between enterprise transformation and workforce development, capturing growth and creating jobs.

Dr Wan Rizal asked about the implementation of the EWTP. Under EWTP, the SkillsFuture Workforce Development Grant (Job Redesign+) (WDG(JR+)) will be rolled out in March 2026, this month. This builds on the earlier Support for Job Redesign under the Productivity Solutions Grant (PSG-JR) programme, which supported smaller-scale projects, leading to improved retention and wage growth.

The WDG(JR+) will expand support significantly. Enterprises can now receive up to 70% of project costs capped at $150,000 per company, which is higher than the PSG-JR cap of $30,000. So, it is a five-fold increase. This will allow companies to redesign more roles, engage experts to build internal capabilities and implement AI-native workforce solutions.

The redesigned SkillsFuture Enterprise Credit (SFEC) will also be launched late this year. Companies can tap on the SFEC to further defray the out-of-pocket expenses of workforce transformation.

Assoc Prof Terence Ho has asked how Singapore can build expertise in human-centric job redesign, ensuring that AI augments rather than replaces human contribution.

We do so through initiatives, such as the EWTP, which couples productivity support with workforce support. We have also worked very closely with NTUC through the Company Training Committee (CTC) programme. Through WDG(JR+), enterprises can work with consultants to assess their AI readiness, identify opportunities and redesign roles. They can also receive support to implement workforce technology solutions, such as AI-powered HR tools.

We will continue to improve access to AI support under EWTP, with pre-packaged solutions targeted at specific company needs. Details will be announced subsequently.

To further drive workforce transformation efforts, we must also develop our HR leaders and professionals because these are the people behind the people. To uplift human capital management standards, we formed a Tripartite Workgroup on Human Capital Capability Development last year.

The Workgroup has made important progress in developing strategies to strengthen firms' HR capabilities, such as through establishing clear benchmarks for human capital performance and expanding professional HR practice to more organisations. Senior Minister of State Koh will share more on the Workgroup's recommendations.

Finally, our third priority is to build more inclusive workplaces that leave no one behind.

Economic growth and business transformation must go hand-in-hand with fairness and inclusion. Our workplaces must continue to provide every worker with safety, opportunity and dignity. In the past, success in the labour market was narrowly defined by academic qualifications, linear career paths and traditional professions. Increasingly, there is greater awareness that there are diverse pathways to success, and every profession deserves recognition and respect.

As Prime Minister said, inclusive growth also means creating good jobs in domestic and essential services where many workers are employed.

The Economic Strategic Review (ESR) has also recommended broadening the range of good jobs in our economy.

Assoc Prof Terence Ho has identified several areas where we can redesign jobs to attract more young Singaporeans, including healthcare and skilled trades. Prime Minister has outlined how we are increasing pay and progression in the education, healthcare and social service sectors. We are working with the labour movement and trade associations to make similar efforts for the skilled trades.

We agree with Ms Diana Pang and Mr Saktiandi Supaat that the skilled trades can and should offer good job opportunities for those who prefer "hands-on" work that require dedication and mastery.

Many such trades will remain essential in our future economy. They may also be resilient, or even complementary, to automation by AI. Electrical work, for example, will remain indispensable in our transition to a green and AI-powered economy. Yet, with the workforce ageing in such trades, we need to think harder about workforce renewal and attracting more Singaporeans to join these trades.

There are young Singaporeans that are building fulfilling careers in the skilled trades. For example, Mr Koh Jia Xing, an electrical engineer with Syntigro Engineering Ptd Ltd. Having trained in aerospace engineering at ITE, Jia Xing decided that he wanted to embark on a career in electrical engineering.

In his career thus far, one project stood out for him – replacing a hospital's main electrical switchboard, with the hospital still fully operational. That is a very difficult task. Believe you me, I have run hospitals before and any outage will result in a significant compromise in human lives. So, this is high-stakes, very challenging work, but it is one that gives a sense of fulfilment, and that pride in how skilled tradespeople can keep critical systems running.

Today, Jia Xing is pursuing a Masters in Electrical and Electronic Engineering at the Singapore Institute of Technology. We want to support those with similar aspirations to Jia Xing.

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Thus, MOM has signed a Memorandum of Understanding (MOU) with the Specialists Trade Alliance of Singapore to embark on a pilot to uplift the electrical trade. As part of this pilot, we will work with industry to develop initiatives for tradespeople, such as a more structured career and skills progression ladder, and apprenticeships. We have started with the electrical trade given its essential role in our future economy, that it has deep skills content, and the need to build a strong local pipeline. We will learn from this to scale up our efforts to other trades. We will provide updates at a later stage.

Building workplaces that leave no one behind also means ensuring that our growth is shared. We will continue to support wage improvements for our lower-wage workers such as through raising the LQS. We have received feedback from businesses that MOM's policies add to costs, and many employers are feeling the squeeze amidst tight margins. I hear you, I do not just hear you, I empathise with you.

But at the same time, I want to also share with you a different perspective, that our manpower policies also serve important social objectives. As highlighted in the Ministry of Finance's (MOF's) Occasional Paper on inequality, policies such as our Progressive Wage Model (PWM) play a crucial role in achieving inclusive growth, and it prevents social fissures from deepening.

The majority of labour-related business cost increases arising from Government policies go towards uplifting wages for lower-wage workers. Without such policies, our lower-wage workers will fall further behind, just as Singapore's Gini coefficient showed before the introduction of the PWM in 2012.

The Government will nevertheless continue to help our businesses to mitigate the cost pressures that you are experiencing. We are with you.

As announced, we will extend the Progressive Wage Credit Scheme (PWCS) to 2028. We have extended it by two years to support businesses doing their part to uplift lower-wage workers.

Mr Shawn Loh and Mr Liang Eng Hwa suggested extending or making PWCS co-funding permanent. Meanwhile, Ms Yeo Wan Ling and Mr Pritam Singh asked how PWCS can be better tied to productivity outcomes.

Our policies strike a balance between these two perspectives. Productivity improvement is key to achieving sustainable wage gains. The PWM is central to these efforts, linking wage growth to skills development, career progression and job redesign.

However, productivity improvement can be uneven across sectors. In domestically oriented sectors where many of our lower-wage workers are employed, it takes time to redesign labour-intensive work processes and it also takes time to allow our lower-wage workers to upskill into new roles. Therefore, on top of broad-based enterprise transformation measures, we introduced the PWCS, temporarily cushioning the near-term cost impact of moves to support lower-wage workers. This ensures that support remains a catalyst, not a substitute for productivity improvement.

The PWCS is reviewed regularly to provide adequate support to businesses while they transform. Just as crucially, as Ms Yeo Wan Ling highlighted, this ensures a manageable pace of change for lower-wage workers to upskill into new roles, limiting disemployment risks.

Many companies have made good use of Government support to innovate and evolve alongside their workers. Over 600 companies have tapped on the Company Training Committee (CTC) Grant since August 2022. Likewise, over 600 companies have taken up the Support for Job Redesign under Productivity Solutions Grant (PSG-JR) since 2020. That said, we must continually renew our efforts. In response to Mr Melvin Yong, we have some ways still to go to boost productivity growth in PWM-covered sectors.

As highlighted by the Singapore Productivity Centre’s Food Services Productivity report, improving productivity is essential for resilience and sustainable growth, especially for firms in sectors facing manpower shortages, competitive pressures and rising operational costs. The Government is fully committed to walking alongside employers and lower-wage workers on this journey.

I spoke earlier about some of the initiatives we will be rolling out to this end, including the Enterprise Workforce Transformation Package (EWTP). The extended PWCS support in 2027 and 2028 will also raise the minimum qualifying threshold for wage increases from $100 to $200, better targeting businesses that invest in capability and workforce development. These efforts are aligned with the Economic Strategy Review's (ESR's) recommendation to broaden the range of good jobs across our economy. Minister of State Dinesh will share about how we will further support upskilling for lower-wage workers.

Ultimately, uplifting our lower-wage workers is a whole-of-society effort. We hope employers will take advantage of support to deepen their transformative efforts, and lower-wage workers will seize the upskilling opportunities to move into higher-value jobs.

Members, including NTUC Secretary-General Mr Ng Chee Meng, spoke about the challenges faced by caregivers, including the "sandwiched generation". We will continue to encourage inclusive workplace practices, supporting workers who may face higher barriers to workforce participation such as women, caregivers and persons with disabilities. Senior Parliamentary Secretary Shawn Huang will provide updates on these efforts.

As work evolves, our employment framework must remain fit-for-purpose. As announced last year, we have embarked on a review of the Employment Act (EA). The tripartite partners are reviewing how the EA can continue to provide appropriate safeguards for different worker groups, including updating coverage and protections for our most vulnerable workers under Part 4 of the EA.

We are also looking at how to provide businesses with greater flexibility and efficiency in workplace management, and to streamline key provisions for easier compliance. We aim to ensure that our employment framework remains trusted and relevant, upholding a harmonious and equitable labour compact where both workers and businesses can thrive.

Mr Patrick Tay suggested mandating advance notification prior to retrenchment. Mr Ng Chee Meng also asked whether Mandatory Retrenchment Notifications (MRNs) can be brought forward. While advance notification has merits, mandating such a requirement poses non-trivial challenges.

Retrenchment is often, in fact I would say, is always a difficult process for all parties involved and is often a last resort for companies. And many a time, senior management, together with the board, conduct backroom negotiations to try to save as many jobs as possible. If we mandate advance notifications, this may inevitably or inadvertently push companies to finalise retrenchments faster, discouraging such negotiations.

Businesses have also expressed concerns over the potential leakage of confidential, market-sensitive information. We are not ruling out any option, we are engaging, we review, this will be a comprehensive review, we are consulting tripartite partners on these issues and will update in due course.

Mr Pritam Singh suggested that Singapore legislate retrenchment benefit, with larger companies paying a higher amount. I have said before when we pushed for the Workplace Fairness Act that legislation is not a panacea. We adopt a balanced approach. We protect our workers but at the same time we need to give businesses some flexibility to adjust in different situations because retrenchments occur for a whole variety of reasons. And company size is also not an indicator of a company's ability to afford retrenchment benefit.

For example, if you mandate retrenchment benefit in larger companies facing financial difficulties, I think we may inadvertently put even more jobs at risk. So it balance, we are reviewing it, and I think Senior Minister of State Koh will provide further updates on the EA review.

Next, on promoting safer and healthier workplaces. Every worker deserves to return home safe and healthy. Workplace safety and health (WSH) is a shared responsibility that involves all of us – employers, workers and Government. Minister of State Dinesh will update on moves to strengthen and improve WSH ownership.

Finally, migrant workers play an essential role in our economy, contributing to our development by building our infrastructure. Minister of State Dinesh will also update on our continuing efforts to ensure our migrant workers' well-being. Mr Chairman, I will now speak in Mandarin, please.

(In Mandarin): Artificial intelligence (AI) is rapidly changing the way we work and, this year, Singapore will also become a super-aged society. Some Singaporeans may feel anxious about the future. This is understandable. As the economy transforms, the Government will ensure that our nation's growth remains inclusive and that it creates good, meaningful jobs for Singaporeans.

One of the important steps we are taking is to harness the potential of AI to create long-term, quality employment opportunities for Singaporeans. AI is a tool. It is not a competitor, and it is definitely not the exclusive domain of young people. As long as we are willing to try and we dare to use it, we can all benefit from it and improve the way we work. Therefore, the Ministry of Manpower (MOM) will make AI tools universally accessible, making it easier for Singaporeans to access AI.

Singaporeans who enrol in designated or selected courses will receive six months of free subscription, to help everyone develop confidence in the use of AI tools.

MOM will ensure that Singaporeans have the support they need at every stage of their career. We will also help graduates from Institutes of Higher Learning establish a solid foundation for their careers.

At the same time, we will also provide more flexible work arrangements for older workers who wish to continue working and strengthen their retirement security. As the ancient saying goes, “Even in the twilight years, a hero's ambition does not fade.” With age comes experience, not retreat. The experience and wisdom of our senior workers are the strongest assets in our workplace.

Please be assured that regardless of the stage of career you are currently in, we will walk alongside with you. This is MOM’s promise to you. We will help you to continuously keep pace with the rapidly changing job market and stride towards the future with confidence.

As the poet Li Bai has written, “There will come a time to ride the wind and break the waves, let us set our sails straight and cross the vast sea.” As long as we remain confident and move forward hand in hand, we will surely forge ahead despite the difficulties and create a better tomorrow.

(In English): So, to conclude, Mr Chairman, the road ahead will be neither certain nor easy. But we have proven over the last 60 years that we can overcome any challenge as long as we are prepared to tackle them collectively together – we did it before and we will do it again.

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Our strong labour market and wage outcomes, they are the result of deliberate choices for us as a society, as a country and as a people to invest in our workers' skills and development, support business transformation, uphold fairness and trust in our workplaces. And we will continue to ride and build on this momentum.

We have all got to play our part. Workers will have to take ownership of their career health, businesses will have to continue to transform, and the Government will continue to walk alongside all of you.

Tripartism will remain the corner stone of our strength. And it is through trust and partnership, through our tripartite way, that we have weathered past challenges. We will collectively shape a future of work where every one of us can contribute with confidence, grow with purpose and we can look ahead with confidence and assurance, come what may. [Applause.]

The Chairman: Senior Minister of State Dr Koh Poh Koon.

The Senior Minister of State for Manpower (Dr Koh Poh Koon): Mr Chairman, our workforce has always been the backbone of Singapore's progress. As Singaporeans live longer and healthier lives, we now have the chance to extend that progress into longer, more rewarding careers. In the past, a career often progresses in a linear fashion, with people starting in one job after graduation and working their way up through the same company. But today, faster business and technology cycles and changing business models mean that most people will go through multiple jobs and roles over their working lives.

Workers now have different work-life balance expectations and different hierarchy of needs at different stages of life. This shift has implications for everyone. For workers, this means that careers are no longer about climbing a corporate ladder, but rather about navigating a dynamic, multi-stage journey – moving up, across domains or even intentionally downshifting to balance life's priorities, such as caregiving. This also means taking greater ownership of their careers and skills and desiring more flexibility in work arrangements.

For employers, this shift means more than just adapting job roles, it means rethinking how jobs are designed to tap on both the vitality of youth and the wisdom that comes with seniority and experience, how talent is managed and developed at every stage and how transitions are supported across a workforce that is increasingly diverse in age. Employers need to be proactive in creating workplaces that are inclusive, flexible and capable of supporting workers at all life stages.

And for the Government, this shift requires a fundamental change in how we support the workforce. We must move beyond supporting training and job-seeking to supporting career longevity, giving workers insights about their human capital and empowering them to take action, across career transitions, across life stages and across different forms of work.

This is why MOM is focusing our efforts in three key areas: empowering seniors to thrive in longer careers, by supporting meaningful participation, career transitions and flexibility in later stages of work; building thriving workplaces that support longer working lives, through stronger HR systems and better management of age-diverse workforces; and thirdly, adapting employment protections for a changing workforce, so that our laws and safeguards remain relevant as work arrangement and career pathways evolve.

Let me first outline how MOM is responding to this shift through our senior employment strategy, before turning to how we are strengthening HR capabilities and employment protections more broadly.

Singaporeans live longer and healthier lives. Our workforce is also maturing. Today's seniors are better educated and more skilled than the generations before them. Future seniors will be even more so, reflecting the high cohort participation in our universities in our population. Seniors therefore offer a growing wealth of human capital and many of them want to contribute meaningfully to our economy.

Supporting seniors today is no longer just about extending working years. It requires planning ahead to enable sustainable careers across later stages of life. We are strengthening support across mid-career and later-career transitions through the Tripartite Workgroup on Senior Employment.

More than 10 years ago, tripartite partners started removing barriers for seniors who wanted to keep working. A major step was to progressively raise the retirement and re-employment ages. These moves have helped more seniors stay employed. These changes matter because they do more than set legal limits. They shape social norms around ageing and work, giving seniors confidence to stay on and giving employers the clarity to plan for and retain experienced workers. Indeed, more than nine in 10 employees who are eligible and wish to continue working are successfully offered re-employment.

This year, we take the next step. We will raise the retirement and re-employment ages to 64 and 69 respectively, keeping us on track towards 65 and 70 by 2030.

I want to assure Mr Sanjeev Kumar Tiwari that these changes have made a difference. Over the past five years, labour force participation among residents in their 60s has edged up, from around 58% to nearly 60%. Among those in their 50s, it rose from 79% to 82%. Internationally, this puts Singapore among the leaders – for workers in their 60s, we rank fifth compared to OECD countries for labour force participation. But for workers in their 50s, we rank only 23rd.

We agree with Ms Jessica Tan's call on the need to strengthen career support for mature and senior PMEs. We need to do more work upstream, to support workers who may be leaving the workforce earlier than they need to or earlier than they would like to.

This is why MOM, together with NTUC and the SNEF, convened the Tripartite Workgroup on Senior Employment (TWG-SE) in July last year. The TWG-SE reflects a shared responsibility, by workers, employers and the Government, to respond to longer, more varied careers for our seniors, including PMEs.

With longer careers ahead, support cannot wait until workers are near retirement. If the drop-off in labour force participation starts from 50, as I said earlier, then the interventions must begin at 40. From our engagements, both employers and seniors told us that earlier training and career guidance are essential to keep skills fresh, open new pathways and ensure every stage of a longer working life remains meaningful and productive.

The TWG-SE is therefore studying recommendations across the senior's career journey, including during mid-career transitions and later-career stages, where timely interventions can make the greatest difference.

Just as good physical health supports longer and better physical lives, good career health supports longer working lives. And like physical health, career health benefits from early, regular check-ins and career planning, not only when problems arise. This is especially important for many who are mid-career in their 40s and 50s, adapting to new roles, technologies or sectors, while balancing work and family commitments and responsibilities. These pivotal years determine how long and how well they can continue working.

Yet working adults often face this journey alone. Unlike the structured education and career guidance that one might find in schools, working adults receive less structured support to help them make sense of options at this stage. This is why, as the Minister highlighted earlier, we are strengthening and broadening Career Health SG by working with and developing the Career and Employment Services sector. We will grow the sector so that there is a variety of good quality services to cater to different segments of seniors, to help them plan ahead, navigate transitions and build sustainable careers over a longer working life.

At the individual level, WSG and its partners have piloted targeted career guidance programmes for individuals in their 50s and 60s planning their later-stage careers. They include workshops, such as the Republic Polytechnic's Designing Your Life – The Next Chapter, and Singapore University of Technology and Design's What's Next: Reimagining Your Career Using Design·AI, which were introduced in April and October 2025 respectively. These programmes have since supported about 1,000 participants, with about four in five already embarking on their career plans within six months of completing the workshop.

With the right guidance, later-stage career transitions can open new doors. Participants, like 61-year-old Mr Eddie Sng and 55-year-old Ms Mabel Lee, show how this works in practice. After attending WSG-supported career guidance workshops, both began to see career transitions as growth opportunities rather than professional endings.

So, Eddie, a former logistics managing director, is now pursuing logistics advisory work while creating digital content. Mabel, a former photographer and marketing professional, has secured a part-time marketing manager role while building her photography teaching practice. Their journeys show how strategic career guidance enables older workers to rethink their options, make confident transitions and continue contributing meaningfully.

Building on these early successes, WSG will work with partners to scale up the provision of career guidance for later-stage careers and integrate these programmes into its regular career guidance offerings.

But career guidance by a third-party is not enough. Employers too have to play a role. Many seniors who are already in employment need clarity on how long they can stay in a role, whether their job will evolve and how they might work differently. These are insights that only their employers can provide. Employers must therefore have deliberate conversations with their workers to plan for job redesign, identify skills needed to seize future job opportunities and adjust work arrangements over time as part of regular workforce planning.

This Structured Career Planning (SCP) should not just be a structured conversation, but should be also structured as part of routine HR processes within the company. Under the Part-Time Re-employment Grant, employers are required to send management and HR representatives to SCP workshops, to gain knowledge and skillsets to conduct SCP. Based on a survey by SNEF, about 80% of these employers subsequently conducted SCP conversations with their employees, who found the sessions useful in helping them to understand options and navigate the next bound of their careers.

What we have learnt is that SCP works best when it starts earlier, not only when one has reached the age for re-employment. Strengthening career planning earlier helps seniors stay confident and employable, while giving employers clearer sight of how to develop and deploy their workforce over longer careers.

Yet today, fewer than 30% of workers aged 50 and above actively plan for their careers and only 38% of employers conduct structured career conversations. Mr Sanjeev Kumar Tiwari rightly asked how we can intervene at the mid-career stage to boost continued employability before workers reach their late 50s.

So, building on the positive experience with SCP, we will therefore give a stronger push for employers to adopt regular SCP conversations earlier in their employees' careers and explore how SCP can be more systematically embedded into HR training and certification requirements. This will enable employers and workers to proactively redesign jobs, adjust work arrangements and build resilience over longer careers.

As workers move into later stages of their careers, some may wish to continue full-time work, others prefer reduced hours or more focused roles, while some require adjustments over time as their priorities, their health status or physical abilities change. Whether seniors can continue contributing depends largely on how workplaces adapt. Employers play a critical role here.

To support employers who hire and retain senior workers, we will extend the Senior Employment Credit to December 2027, as announced by the Prime Minister at Budget. Mr Sanjeev Kumar Tiwari and Mr Shawn Loh have asked for longer extensions to the SEC, and whether the scheme will be studied beyond 2027.

Under the TWG-SE, we are reviewing support measures for employers more holistically, including reviewing the SEC and whether longer-term measures may be appropriate. We have also extended the Part-Time Re-employment Grant to December 2027, to support employers in offering suitable part-time and flexible work options that attract and retain senior workers. Beyond these measures, we also need to rethink traditional job designs.

What does age-friendly work look like in practice? There is no one-size-fits-all model that will work for every company and it will likely be different across industries and job roles. Through the Alliance for Action on Empowering Multi-Stage Careers for Mature Workers (AfA-EMW), we are working with organisations including intermediaries to test practical models, which can give employers greater confidence to act.

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For example, under the AfA-EMW, the pilot by QED Changemakers gives us a glimpse of how we can unlock senior expertise in new ways. By connecting experienced senior professionals with companies that need their expertise on a project basis, senior professionals can continue contributing meaningfully, sharing decades of experience, staying active, and earning an income, while companies, especially SMEs, get access to seasoned leadership when they need it.

Another example explores how simple job redesign can keep experienced bus captains on the road, safely and sustainably. Tower Transit is piloting new work arrangements that allow senior bus captains to continue working safely and confidently. With more balanced shifts, job rotation and lighter duties, seniors can keep contributing, while the company retains experience, maintains service reliability, and supports the next generation of bus captains.

These prototypes are being developed and will feed into the TWG-SE's recommendations, translating good ideas into scalable practices.

As seniors remain economically active for longer, work must also remain safe and sustainable. To support the development of industry-led solutions to address common workplace safety and health risks, including those faced by seniors, MOM will be launching an Alliance for Action on Safety and Health for Employment Longevity (AfA-SHEL). Minister of State Dinesh Vasu Dash will share more detail about this.

These efforts reflect a holistic approach to senior employment, to help seniors continue to contribute meaningfully, in ways that work for them, for their employers and for our economy.

Across both mid- and later-career stages, navigating transitions remains a key challenge. Workers need clearer pathways to plan their next steps, while employers need guidance on age-friendly workforce design. Today, even though seniors can tap on many schemes for training, job search or hiring support, navigating these different sources of support can still be challenging. So, to address this, the TWG-SE is studying a more integrated approach to support career longevity and whether to deliver this through a dedicated centre for career longevity, which brings service providers together to raise awareness, collaborate, as well as develop and scale solutions for longer, multi-stage careers.

What does this centre mean? For individuals, this would help them better navigate and access the relevant career, skills and employment support in accordance with their needs, including allowing them to plan earlier for their later-stage career transitions. For employers, they would be able to access practical resources and the network of partners to support them in designing age-friendly workplaces and strengthen multi-generational teams. For partners, this would be a platform for them to test and scale new initiatives, new innovative practices, including those emerging from AfA-EMW.

This centre could be co-located with existing career centres, so individuals who need job search assistance can receive more holistic support across the various aspects of career planning, skills and employment, rather than navigating these services separately. In this way, we shift the focus from managing exits to enabling longer, meaningful participation at work. Ms Mariam Jaafar asked when the TWG-SE will share its recommendations. The TWG-SE will release its report in the second half of 2026, with further details on its proposed measures. Mr Chairman, allow me to say a few words in Mandarin.

(In Mandarin): The Tripartite Workgroup on Senior Employment (TWG-SE) was established last year. After communicating and exchanging views with various parties, the Workgroup concluded that as Singaporeans' careers extend, we must assist employees with career planning earlier, support employers in redesigning job roles and ensure that relevant systems and incentive measures are practical and feasible.

For employees, this means receiving support for career guidance and skills training earlier, enabling smooth transitions while they still have options.

For employers, this means receiving clearer support to retain experienced employees, redesign job roles and provide flexible work arrangements that are more suitable for older workers.

For the Government, this means strengthening the overall career and employment ecosystem, ensuring the viability and sustainability of longer careers through career guidance, skills training and employment incentives.

The Workgroup is currently studying recommendations for the various stages of older workers' career journeys, including needs from mid-career transitions to later-career adjustments, and will announce the relevant outcomes in the second half of 2026.

(In English): Our senior employment efforts reflect a broader shift in how we support working lives: longer careers, less linear progressions and more frequent transitions. But this is not a challenge unique to seniors. Across the workforce, workers are navigating more frequent changes as our economy restructures and technology reshapes jobs. This calls for stronger systems that help all workers and employers manage transitions more deliberately and responsibly.

Employers and especially their HR teams are critical enablers. HR sits at the intersection of skills and career development, job redesign and employment practices. How well firms manage careers directly affects whether workers can stay relevant, productive and engaged over longer careers.

This is why MOM convened the Tripartite Workgroup on Human Capital Capability Development (TWG-HC) in February 2025 to strengthen workforce development capabilities across organisations.

We are establishing clearer benchmarks of what "good" looks like. MOM launched the Singapore Opportunity Index (SOI) last October and unveiled the top 300 organisations earlier this year. The SOI gives employers and workers a data-driven yardstick to see how the best workplaces shape outcomes like pay, progression and retention, enabling employers to make sharper talent decisions. Beyond recognising top performers, we are progressively releasing detailed reports and advisory support to help all 1,500 organisations covered by the SOI improve.

To turn these insights into real gains for workers and businesses, the workgroup will also make recommendations to uplift the HR profession in key areas.

First, we are strengthening HR leadership capability. SNEF is leading a multi‑agency effort to pilot a National HR Leadership Programme, together with NTUC and our local HR institutes. The programme aims to strengthen Singapore's local HR leaders through international exposure, experiential learning, mentoring and networking.

Second, we are preparing HR for AI-driven change. As AI accelerates transformation across sectors, stronger and more systematic HR capability becomes even more critical. AI can automate repetitive tasks like scheduling interviews and handling routine queries. It can also surface workforce trends more quickly, helping HR to spot skill gaps earlier and design better development and deployment strategies.

But let us be clear here: AI is not here to replace the human in HR. AI can take care of the processes, but only humans can take care of people. This shift towards human-AI collaboration presents opportunities for HR to be more strategic, more developmental and more human-centered.

Ms Jessica Tan asked how we are equipping HR to be more AI-driven. MOM is working with the Ministry of Digital Development and Information (MDDI) and Infocomm Media Development Authority (IMDA) under the National AI Impact Programme to develop AI fluency amongst HR professionals. In parallel, NTUC is developing a framework to help companies with limited AI experience, especially smaller SMEs navigate the complexity of AI adoption for HR by consolidating existing resources for AI readiness assessment, training, applicable grants and widely adopted AI tools for HR.

Looking ahead, MOM, WSG and Institute for Human Resource Professionals (IHRP) will refresh the HR Jobs Transformation Map this year to provide clear guidance on two fronts. One, how AI will transform HR jobs and two, how its impact on the wider workforce will change the demands on HR. The TWG-HC will also consider Ms Tan's suggestions as part of its broader review.

Third, we must expand professional HR practice to more organisations. As our workforce becomes more diverse and employment issues more complex, organisations need HR that meet high standards, possess future-ready competencies and are committed to continuous professional development.

This need was recognised back in 2020 when the NTUC-SNEF PME Taskforce recommended mandating HR certification for larger firms. However, such a significant change could not happen overnight. This is why we have spent the last five years laying the groundwork to strengthen the value of HR certification. I am happy to say that these efforts have yielded good progress.

Today, the certified community exceeds 10,000 professionals. Around 45% of larger firms with more than 200 employees have a certified HR, covering nearly half of Singapore's workforce. The impact has been promising. A recent study by MOM economists showed that the IHRP certification delivered measurable improvements in both wage outcomes and employment prospects of certified professionals. This ultimately translates into benefits for both firms and workers, as evidenced by the greater range of career development initiatives – such as workforce planning and career guidance – implemented in organisations with certified HR professionals compared to those without.

With this critical mass established, we are now ready to take the next step. We need a broader coverage of certified HR professionals who can embed best practices like structured career planning, which I mentioned earlier, to strengthen employee engagement and in turn business productivity. We just cannot afford to leave this to chance.

Mr Patrick Tay asked if the Government will consider mandating IHRP certification. Building on the PME Taskforce's recommendation, the TWG-HC is studying a proposal to require larger organisations with more than 200 employees to have a suitable HR personnel certified. The workgroup is now studying how this can be done in a way that is practical for businesses and will put out its detailed recommendations later this year.

For firms who may not have dedicated HR, MOM is working with partners to uplift the wider career and employment services ecosystem. As mentioned by Minister, through the Alliance for Action on Advancing Career and Employment Services (AfA ACES), we are working with private career and employment service providers to pilot new initiatives and services to support workers of diverse profiles in their career journey.

These efforts – from uplifting HR capabilities to partnering ecosystem players – are part of a longer-term vision under the Economic Strategy Review's (ESR's) Committee on Human Capital, which I co-chair, to build a future-ready jobs and skills ecosystem where employers invest in people, HR is a strategic partner and workers can move more confidently across roles and sectors over a longer working life.

As the economy evolves, more workers may face job displacement, not because they lack ability, but because of business restructuring or failure or economic cycles. Even with stronger HR capabilities and better career support systems, job transitions may still be difficult, especially when the change happens abruptly.

To help workers through such transitions, we introduced the SkillsFuture Jobseeker Support scheme in April last year. This scheme provides temporary financial relief to involuntarily unemployed individuals, helping them transition into suitable new roles rather than rushing into poor job matches.

As at end-October 2025, more than 3,500 individuals have received support from the scheme. Among these individuals, we estimate that more than 1,600 have since found new job roles. Mr Ng Chee Meng and Mr Patrick Tay asked whether we would consider increasing the current qualifying income cap. As the scheme has only been rolled out last year, we will conduct a review when we have more experience, including on key parameters such as the qualifying income, to ensure the scheme remains well-targeted and sustainable.

Building on this, the ESR's Committee on Managing the Impact of Restructuring is studying how we can support workers more proactively, and how we can extend meaningful support to more groups, including PMEs. For instance, as Minister said, this could include requiring earlier notice of retrenchment from employers, leveraging networks of trade associations and chambers to provide more targeted job matching in sectors with more PME job openings and expanding the scope of support under Career Conversion Programmes to help more workers with the transition into growth jobs.

These efforts reflect a shift from reacting to job loss, to actively supporting career transitions, guided by strong tripartite partnerships and closer alignment between skills, jobs and industry needs.

Beyond transition support, our employment laws are important to ensure our workers are adequately protected. Many Singaporeans may not realise that the EA profoundly shapes our everyday working lives. It sets out the basic terms and conditions of employment, such as timely salary payments, overtime pay and sick leave. As the EA covers almost all employees in Singapore, we must always strike a careful balance between protecting employees and giving space for employers to thrive.

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But the nature of work has changed. Our workforce profile is different, work arrangements are more varied and businesses are operating in a more competitive environment. That is why the tripartite partners convened the Tripartite Workgroup on the Employment Act Review (TWG-EAR) in August last year, to review key parts of the Act in a balanced way, protecting workers who need it most while supporting business flexibility.

Mr Pritam Singh and Mr Patrick Tay have asked for an update on the main areas of review for the EA. Mr Pritam Singh also asked if the review can include a public consultation in parallel with tripartite negotiations. In conducting this review, the Tripartite Workgroup has collectively engaged more than 2,000 stakeholders, including PMEs, lower-income employees, employers, HR practitioners and other experts to understand diverse needs across the workforce. What we heard from workers and employers was clear: different groups need different forms of protection and flexibility.

For lower-wage employees, time-based protections still matter and overtime pay remains an important part of their income. As wages rise and the workforce profile evolves, we will review Part 4 of the EA to ensure these protections remain well-targeted at workers who need them most.

For employers, greater flexibility is needed to manage costs, redesign jobs and stay competitive. Done right, this can also benefit workers, by allowing employers and employees to negotiate mutually beneficial arrangements that meet individual needs.

Mr Patrick Tay has asked about the Ministry’s plans to issue guidelines on the inclusion of restraint of trade clauses in employment contracts. We are discussing with tripartite partners on how and when restrictive clauses in employment contracts can and should be used, and the guidelines will be based on established principles that the Courts have articulated. Employees who believe that they are affected by unreasonable or unjustified clauses can seek assistance from their unions, TAFEP or MOM. We will update further, in due course.

Finally, many stakeholders pointed out that the Act has become harder to navigate over time. We will study how to streamline and clarify key provisions, so that they are easier to understand and comply with.

The TWG-EAR will publish its report in the second half of this year. Through this Tripartite Workgroup, we are strengthening protections where they matter most, while keeping our labour framework practical and responsive as careers lengthen and workplaces evolve.

Taken together, these efforts reflect a simple principle: as work changes, our protections must evolve alongside it. Whether it is supporting workers through restructuring or updating the EA, our aim is the same – to ensure workers and employers can adapt with confidence to the future of work.

Sir, longer lives are reshaping how we work, how we build careers, and how our economy grows. What matters now is whether our workers, employers and systems are ready to adapt to these changes with confidence.

That is why much of our work this year has focused on building practical partnerships – through tripartite workgroups, alliances for action and the Economic Strategy Review – to listen carefully, to test what works on the ground, and turn ideas into outcomes that matter for both workers and employers and ultimately, for Singapore.

Career longevity is not simply about staying employed for longer. It is about enabling Singaporeans to remain productive, adaptable and engaged across different stages of their lives and enabling employers to continue drawing on the full range of experience, skills and capabilities in a tight labour force.

This effort cannot be carried by any single party alone. Workers must stay adaptable, taking ownership of their skills and plan ahead for transitions over longer careers. Employers must continue to invest in their people, redesigning jobs, developing skills and creating workplaces where workers of all ages can contribute meaningfully. Government will continue to walk alongside both, strengthening career and employment systems, uplifting HR capabilities, supporting transitions and keeping our employment protections fit for a changing workforce.

This is how we turn longer working lives into a strength for Singapore, strengthening productivity, resilience and inclusion at the same time. And our commitment to Singaporeans is this: as work changes, we will keep listening, keep assisting, and keep adapting, so that workers have the confidence to move forward and businesses have the support to grow through change.

The Chairman: Minister of State Mr Dinesh Vasu Dash.

The Minister of State for Manpower (Mr Dinesh Vasu Dash): Minister Tan See Leng has set out MOM’s bold agenda to equip our businesses to seize emerging opportunities and chart a course for growth. As we build the economy of tomorrow, our commitment is that each and every worker will be supported and that no worker will be left behind.

This is the spirit of a “we first” Singapore, where everyone has their place and can participate with dignity. Most importantly, all contributions, particularly those from our vulnerable workers, will have to be recognised and uplifted.

In my speech today, I will elaborate on three areas: first, our tripartite efforts to uplift lower-wage workers and how we will progress this work in the next-bound; second, our drive to strengthen workplace safety and health, such that our workers continue to return home safely to their loved ones; and third, how we will continue to support our migrant workers.

Let me start with our efforts together with our unions and employers to uplift lower-wage workers. These efforts embody the very heart of our social compact – our promise to walk with our lower-wage workers every step of the way. As you contribute to Singapore’s progress, so too will you share in the rewards and opportunities that accompany that progress.

We have forged over time a distinctly Singaporean approach to supporting our lower-wage workers. First, we drive sustainable wage improvements. We have uplifted wages for lower-wage workers without putting their jobs at risk through the Progressive Wage Model (PWM).

PWMs serve as wage ladders across nine sectors and occupations. These are negotiated by tripartite partners with reference to considerations such as productivity and business conditions, ensuring that wage growth does not exceed what the sector or occupation can bear. PWMs also map out clear pathways for training and progression. Wage increments are therefore sustainable for employers, as they come alongside productivity growth.

Lower-wage workers not covered by PWMs may benefit from the LQS. Firms must pay their local workers at least the LQS if they hire foreign workers.

Lower-wage workers receive additional support through the Workfare Income Supplement scheme (WIS). This scheme supplements their incomes and helps them save for retirement. Since its inception in 2007, WIS has supported over 1.1 million workers with $12.7 billion in payments.

Assoc Prof Jamus Lim called upon the Government to increase the qualifying monthly wage cap for WIS. We did so last year, when we raised the qualifying wage cap from $2,500 to $3,000. The 20th income percentile for a full time resident employee is about $2,800 currently. So, the WIS qualifying monthly wage cap of $3,000 continues to target Singaporean workers with earnings in the bottom 20%, with some support to those who are slightly above. At the same time, we will also increase WIS payments to up to $4,900 per year. [Please refer to ​"Clarification by Minister of State for Manpower", Official Report, 3 March 2026, Vol 96, Issue 23, Correction By Written Statement section.]

We have and will continue to review WIS regularly to ensure it remains effective in supporting our lower-wage workers, complementing the PWM and LQS.

Secondly, we provide various forms of support for businesses to transform. Mr Melvin Yong highlighted business transformation is crucial as it enables sustainable wage growth through productivity improvement. It also unlocks opportunities for lower-wage workers to take up higher value-added job roles. Recognising that this is a process that takes time and to cushion the impact on business costs, the Government introduced the PWCS at Budget 2022.

Third, we enable progression of our lower-wage workers through support for training and upskilling. Schemes such as the Workfare Skills Support (WSS) reduce the opportunity cost of training for lower-wage workers. This opens doors for workers to move up in their careers, including progressing up PWM job ladders.

Our approach had delivered tangible outcomes for lower-wage workers. Today, 150,000 lower-wage workers benefit from wage and career progression pathways through the PWM, more than five times the number it was in 2020. The LQS requirement was also broadened in 2022, such that firms hiring foreign manpower are required to pay LQS to all their local workers. This ensures that no Singaporean worker is left behind. Another 104,000 lower-wage workers not covered by PWMs are therefore supported by the LQS. This has made a significant difference for the incomes of lower-wage workers. From 2021 to 2025, the real income at the 20th percentile rose cumulatively by 10.1%, outpacing the 7.4% increase at the median.

Workers in PWM sectors have and will continue to see significant improvement in their wages as our economy grows. As an illustration, the baseline wage requirement for entry-level office and commercial cleaners has increased by about 50% cumulatively since 2021. By 2028, it will be $2,420, which is almost twice the requirement in 2021, which was then $1,274. Likewise, compared to 2021, entry-level outsourced security officers can also expect to earn a higher monthly gross wage by about 40% more in 2026, and 60% in 2028.

This is progress that we can be proud of – progress that reflects the collective resolve of unions, employers and the Government working in unison to improve the livelihoods of our lower-wage workers.

But we are committed to going even further. We will build on our efforts across each of these areas, to further uplift and upskill our lower-wage workers and broaden the range of good jobs as recommended by the Economic Strategy Review Committee.

First and foremost, we must sustain our momentum in uplifting wages. In 2025, tripartite partners announced updated wage schedules for Retail, In-house Security, Administrators and Drivers. The remaining PWM sectors will negotiate their next-bound of wage schedules increases later this year.

As announced by the Prime Minister at Budget, the Government will also raise the LQS so that our lower-wage workers continue to see wage improvement. We will raise the LQS threshold from $1,600 to $1,800 for full-time local employees. This will be implemented from 1 July 2026. Raising the LQS to keep pace with wage growth ensures that locals are employed meaningfully, rather than in token jobs just so that firms can hire foreign workers.

Second, we will spur business transformation to raise productivity and create better jobs, including for our lower-wage workers. Mr Melvin Yong would be pleased to note that MOM will be introducing various initiatives in support of this.

The Minister spoke about these initiatives earlier. For example, the SkillsFuture Workforce Development Grant (Job Redesign+) (WDG(JR+)) will be rolled out in March this year to provide enhanced funding support for job redesign and workforce transformation as part of the Enterprise Workforce Transformation Package (EWTP). We will also launch the redesigned SFEC this year, to provide additional support for workforce development.

Businesses have also shared their concerns around near-term economic uncertainties and manpower costs. We hear these concerns. Businesses will not be left alone to deal with cost pressures as they seek to do their part for our lower-wage workers.

You have heard from the Prime Minister at Budget that we will extend PWCS to 2028. This builds on four earlier enhancements to PWCS, most recently in 2025. Since the scheme was introduced in 2022, PWCS has supported wage improvement for lower-wage workers, even as firms undertake the longer journey of transformation. For wage increases given between 2022 and 2024, the Government provided about $3.6 billion of PWCS funding to over 110,000 employers. These wage increases have been meaningful – the median monthly increase supported by PWCS was about $250, across more than 710,000 workers.

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Mr Pritam Singh asked about the outcomes of the PWCS, including how it had been tied to business transformation, sector productivity and worker upskilling.

Uplifting wage outcomes for lower-wage workers and narrowing the wage gap with the median is, in itself, a key objective of this Government. I have shared earlier of how we have performed well on these measures and these are measures in real income terms.

But ultimately, productivity needs to rise for wages to be sustained. Raising productivity is, therefore, a key focus of the PWM as it links wage growth to skills development, career progression and job redesign. This is complemented by our enterprise grants that enable business transformation and job redesign, and support for upskilling, such as the Workfare Skills Support scheme.

PWCS provides transitional co-funding for wage increases given to lower-wage workers, allowing businesses the space to restructure business processes and reap productivity improvements

There are many good examples of forward-looking companies which have moved to innovate and evolve in this area. Let me just take an example of ISS Facility Services Singapore.

ISS has benefited from the PWCS support in providing its lower-wage workers wage increases, as well as productivity improvements, through the various technology-enabled solutions. For example, ISS' cleaning services now deploy a fleet of more than 130 cleaning autonomous robots, which have led to considerable gains in productivity.

ISS' investments in technology and automation have also unlocked opportunities for its workers to progress to more value-added roles. For example, Mr Arthur Lim, a healthcare cleaner under the PWM, has been able to take on more complex duties with greater technical requirements.

Mr Lim tapped on upskilling opportunities, including those supported by the WSS scheme. He is now proficient in operating specialised equipment, such as the ultraviolet (UV) disinfection machines and also manages enhanced healthcare cleaning protocols and contributes to infection control workflows. Mr Lim shares that learning these new skills has given him a renewed sense of purpose and contribution to his workplace.

Likewise, there are F&B firms that are adapting to enhance their capabilities and boost their business performance, as stated in the Singapore Productivity Centre's recent Food Services Productivity Report. For example, Sushi Express leverages sushi robots and these have reduced the time taken to mould a piece of sushi to below 15 seconds, while improving production consistency. With this PWCS' extension, we will continue to support businesses in doing so.

In deciding on the enhancements, we took into account the current uncertainty in the economic and geopolitical landscape, business conditions as well as consultations with our tripartite partners among other factors.

The Government will co-fund up to 30% of wage increases given to eligible lower-wage workers in 2026. And this actually higher than the 20% which was originally announced. Co-funding support will be provided in 2027 and 2028 at 30% and 20% respectively.

The extended PWCS support in 2027 and 2028 will also have a higher minimum qualifying threshold for wage increases of $200, from $100. This better encourages and rewards businesses that invest in transformation and workforce development in line with PWCS' objectives.

We urge employers to take advantage of the Government's various forms of support, including the initiatives to be rolled out as part of the EWTP, such as the SkillsFuture WDG(JR+) and the SFEC. Employers can leverage these to further their respective transformation journeys and support their lower-wage workers in skills upgrading to perform higher value jobs.

This brings me to our third area of focus – our support for lower-wage workers in upskilling.

As Ms Yeo Wan Ling observed, this will allow our workers to move alongside instead of being displaced by business transformation, so they can take on new roles and advance in their careers.

Minister Tan has outlined how Career Health SG empowers individuals to take charge of their careers and how we are evolving our SkillsFuture movement to refresh our jobs and skills ecosystem. These are moves that will support all workers in their career planning and upskilling journey.

However, lower-wage workers may face unique constraints in stepping away from their work to pursue training. This therefore becomes a catch 22 situation as taking time off to upskill may mean forgoing income that they may need for immediate expenses. Lower-wage workers can be assured that the Government understands these challenges. They will not have to choose between earning an income today and equipping themselves with skills for tomorrow.

Those who pursue long-form courses can now benefit from the new Workfare Skills Support (WSS) (Level-Up) scheme.

As announced at Budget 2025, trainees undertaking long-form courses will be supported with a training allowance significantly higher than the existing WSS support for short-form courses. These long-form courses include Nitec or Higher Nitec qualifications, diplomas, post-diplomas or undergraduate degrees.

I am pleased to share that we will broaden the list of courses supported by WSS (Level-Up), to include long-form Workforce Skills Qualification (WSQ) full qualifications and that these courses will be similarly eligible for the training allowance under the SkillsFuture Level-Up Programme. The changes will take effect from fourth quarter this year.

WSS (Level-Up) will support lower-wage workers in pursuing these more substantive forms of upskilling and reskilling, without needing to worry about making ends meet.

To give just a few examples, retail workers can benefit from higher training allowances to undertake a Nitec qualification in Retail Services or a Diploma in Retail (Operations).

At the same time, we will also enhance the WSS (Basic) scheme to support workers undertaking shorter training. This will help workers meet their PWM training requirements or take up WSQ courses. We will increase the training allowance for self-sponsored trainees from $6 per hour to $10.50 per hour effective as at 1 July 2026. With the increase in the hourly training allowance, workers can now actively consider training without having a significant reduction in pay.

We will also streamline the scheme to reduce complexity. Only trainees who attain full qualifications will receive the Training Commitment Award (TCA) of $800 per year. Full qualifications are sets of related courses that result in a formal qualification, such as the WSQ Qualifications or Academic Continuing Education and Training Qualifications. These have been found to lead to better outcomes for trainees, compared to modules that do not lead to any formal qualifications.

Mr Melvin Yong suggested developing better AI-relevant skills pathways. He would be glad to know that the courses supported by WSS include industry-relevant AI skills courses that are suitable for lower-wage workers, so that they will not be left behind amidst this AI transformation that we are currently undergoing.

Our work is not complete. Employers must press on with wage increases for lower-wage workers and go the extra mile in redesigning jobs and business processes. Workers should embrace opportunities for upskilling and chart new paths to build their careers. And Government will partner employers and workers through co-sharing the near-term costs of transformation and ensuring that training and skills upgrading remain accessible.

Consumers too, have a role to play. Consumers can make their choices count by supporting businesses which pay Progressive Wages to lower-wage workers. They can look out for and support businesses that may have attained the Progressive Wage Mark.

Our promise to lower-wage workers is this. We are united with you, and we are here to support you in every way that we can. You can count on us for our support, and we will be here for the years to come as well.

Let me now move to my second segment which is on ensuring safety in our workplaces.

Through the collective efforts and commitment of all stakeholders, our Workplace Safety and Health (WSH) performance has continued to improve. I am heartened by the steady progress towards our WSH 2028 goal of sustaining the fatal injury rate at below 1.0. Singapore's workplace fatal injury rate for 2025 was 0.96% per 100,000 workers. This is the lowest on record other than when COVID-19 disrupted work.

That said, we must not rest on our laurels. Every workplace death is a tragedy, and we must continue to stay vigilant in uplifting our WSH standards and to build a strong and sustainable WSH culture.

There are many companies who have heeded this call, and I will cite one example.

Teambuild (ICPH) Pte Ltd, an SME in the manufacturing sector. Teambuild has invested in technology to redesign work processes and create safer workplaces for their workers. By introducing the rebar mesh welding methods and machines, they have automated stackers for completed prefabricated, pre-finished volumetric construction (PPVC) units. Teambuild has reduced the need for manual handling of these very heavy materials. This has, in turn, brought down the musculoskeletal injuries amongst their workers and increased productivity at the same point, where they were able to improve productivity costs of about $180,000 per year. Hence, a double benefit. Teambuild's efforts show that when companies prioritise their workers' safety and health, they also build a more productive and sustainable business over time.

As the nature of work evolves and our workforce changes, new opportunities emerge alongside new challenges for workplace safety and health. The greater use of digital technology and an ageing workforce are two such examples.

Together with NTUC and SNEF, MOM will be launching the Alliance for Action on Safety and Health for Employment Longevity (AfA-SHEL) in the second half of 2026.

Mr Melvin Yong emphasised the need to go beyond traditional high-risk industries and to pay greater attention to common work-related injuries and occupational diseases. He also underscored the importance of moving upstream to make workplaces safer. We agree and we have incorporated part of his suggestions into three focus areas that AfA-SHEL will focus on.

Firstly, injury prevention for the general workforce. Second, the support for those who are returning to work after a period of injury or a health episode. And third, workplace adaptation and job redesign, to make workplaces safer and more sustainable for our increasingly diverse workforce comprising people with various physical and health needs.

We also agree with Mr Yong's calls to treat fatigue as a core safety issue and better leverage technology in the WSH space. These are areas the AfA-SHEL could explore, through prototypes of technological solutions or fatigue management systems customised for specific workplace settings. We welcome the Labour Movement's active participation in the AfA-SHEL.

Mr Melvin Yong has also underlined the importance of the Government's role in driving change through procurement policies. And that is why WSH procurements for the public sector construction and construction-related projects have been raised since April 2024. The enhancements, which include a requirement to adapt and adopt mature WSH technologies when tendering for projects that are above or at $3 million, are aimed at doing exactly that.

On platform workers, Ms Yeo Wan Ling has called on MOM to leverage the Platform Workers Trilateral Group to explore how we can strengthen platform worker safety. We have taken the Member's suggestion into consideration, and more will be announced later this month.

Let me move quickly to my third segment on supporting our migrant workers. They have worked tirelessly to build and to keep our towns and homes running smoothly every day.

Over the years, we have worked closely with employers, dormitory operators and community partners to build a resilient ecosystem supporting migrant workers' well-being, spanning their housing, healthcare and recreation needs.

These efforts have been impactful. In 2024, the Migrant Worker Experience Survey has shown that more than nine in 10 migrant workers shared that they were satisfied with their working and living conditions in Singapore. This was the highest that was seen since the survey was first conducted since 2011.

Migrant worker housing has been our key priority. Migrant workers have built our homes, and it is our responsibility to ensure that they too have a conducive place to rest after a hard day's work. Good rest also ensures that they will continue working well and most importantly, work safely. That is why we have raised dormitory standards and enhanced pandemic preparedness in recent years.

To support existing dormitories in meeting improved standards by 2030, MOM has introduced the Dormitory Transition Scheme Grant to help defray retrofitting costs for about 900 existing dormitories. These improvements include provisions such as ensuite toilets and isolation facilities for better public health resilience. By 2040, all new and existing dormitories will meet the New Dormitory Standards, providing residents with more spacious rooms including in-room Wi-Fi coverage as well.

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Improving the housing conditions of our migrant workers does not necessarily mean higher costs. Earlier this year, MOM opened its first Government built-and-owned dormitory. The NESST Tukang Dormitory, as it is called, went beyond regulatory standards to incorporate design features shaped by migrant workers' feedback and improving their liveability and pandemic resilience. Notwithstanding these innovations, NESST Tukang is able to offer bed prices at below those of dormitories that meet the new dormitory standards and is expected to be financially sustainable.

I invite dormitory operators to join the Government in reimagining what is possible for migrant worker housing in Singapore. MOM is committed to working with you to testbed innovations and enhancements for the dormitory industry, as we press on with the construction of our second dormitory that will be in Sengkang West.

Equally important are spaces where our migrant workers can spend their rest days, build friendships and connections. To this end, MOM has made significant strides to transform and enrich Recreation Centres, which have seen higher visitor ship over time.

Ms Yeo Wan Ling and Mr Melvin Yong have called on the Ministry to continue enhancing migrant workers' access to key amenities and community spaces. I am pleased to share that building on existing Recreation Centres, we will introduce the Recreation Hub (RH) model, and this will expand the scale and range of offerings for our migrant workers. This will start with the redevelopment of the Soon Lee Recreation Centre into the first Recreation Hub. In 2030, migrant workers can look forward to a Soon Lee Recreation Hub that is about two to three times larger with its upgraded facilities and more offerings.

Beyond this model, MOM will also pilot smaller-scale satellite Recreation Centres to bring social and recreational options closer to where migrant workers live. Even as we improve the physical infrastructure of housing and recreation centres, what truly makes our migrant workers feel at home is the assurance that Singaporeans accept them and appreciate their contributions. How we treat our migrant workers in our daily lives says much about who we are as a people and as a society.

I would like to conclude Mr Chairman, that our efforts to support our vulnerable workers are an investment in social cohesion and resilience – they will preserve confidence in our social compact and foster enduring trust.

The Government is firmly committed to this undertaking and will continue to pursue it in close collaboration with our tripartite partners. Together, we will walk alongside every worker as we move forward with confidence.

The Chairman: Senior Parliamentary Secretary Shawn Huang.

The Senior Parliamentary Secretary to the Minister for Manpower (Mr Shawn Huang Wei Zhong): Mr Chairman, I will begin by sharing how we are strengthening our workplace fairness framework so that all workers are treated fairly.

I appreciate Ms Diana Pang's suggestion to make inclusive practices manageable for SMEs. The Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) will step up public outreach and education efforts on the Workplace Fairness Act. TAFEP's resources and guides are kept simplified and bite-sized. Even SMEs with no dedicated HR personnel can easily apply them.

Ms Diana Pang also spoke about strengthening protections against workplace harassment and bullying. No worker should be subjected to such unacceptable practices in the workplace. The Workplace Fairness Act strengthens protections for workers facing harassment by requiring firms to put in place grievance handling processes. Beyond this, we will go upstream to help employers prevent workplace harassment and bullying.

MOM and tripartite partners are reviewing the existing Tripartite Advisory on Managing Workplace Harassment and developing a new Tripartite Standard on this matter. This will enhance the guidance for employers to adopt best practices to prevent and respond to workplace harassment.

Let me now highlight or outline our targeted measures for groups that need more support, starting with women and caregivers, two groups that tend to overlap. Too often, women who take on caregiving responsibilities may feel that they are making a zero-sum choice between caring for their loved ones or pursuing their careers.

As Ms Mariam Jaafar pointed out, caregivers who leave the workforce often find it hard to return. Programmes like Workforce Singapore's Career Conversion Programmes (CCP) can help them get back into jobs with good prospects. But MOM also wants to ease their dilemma upfront by making work and caregiving sustainable. This is where flexible work arrangements come in.

FWAs are much more than just working from home. They also include flexible load arrangements and flexible working hours. These arrangements give employers and workers more options to organise work in sustainable and productive ways.

Mr Ng Chee Meng and Mr Abdul Malik have highlighted the pressures faced by sandwiched caregivers who care for both children and seniors. Both members asked for stronger support for this group, through measures like financial support and leave.

On financial support, eligible working caregivers can boost their income and CPF savings through the Workfare Income Supplement and the Earn and Save Bonus under the Majulah Package. Non-working caregivers who have taken extended breaks can also benefit from other measures. For instance, they can boost their CPF savings in their senior years through the Matched Retirement Savings Scheme and the Budget 2026 CPF top-up.

On leave, many employers have voluntarily introduced caregiving-related leave provisions as part of their strategy to attract and retain talent. In 2024, around 6,100 employers offered paid family-care leave. This represents about 36% of private companies with at least 25 employees. However, many working caregivers tell us that FWAs are their preferred means of support.

FWAs offer caregivers the flexibility they need to stay in work. If a family member needs help with daily routines like medication or meals, caregivers need flexibility across the work week, not just a single block of time off. FWAs are thus more sustainable for caregivers to stay in employment. By staying in work, caregivers can secure a reliable foundation for their longer-term financial security.

Mr Abdul Malik has asked for the Government to collect data on caregiver employment. We already do, and our data suggests that FWA provision has risen. More women and caregivers have been able to stay in or return to work.

Based on MOM's surveys, one in two firms offered scheduled FWAs before the pandemic. When the pandemic hit, this changed our working norms and increased the provision of work-from-home and flexi-load FWAs. Now, around seven in 10 firms offer FWAs, even as firms adjust to new post-COVID-19 norms and adjust provision. And this has supported our labour force participation rate.

The share of caregivers who were neither working nor looking for work among residents aged 25 to 64 fell from 28.2% in 2019 to 17.2% in 2025. Similarly, the female labour force participation rate among those aged 25 to 64 has also risen, from 76.1% to 80.5% over the same period.

FWAs do not only benefit workers, they are a competitive advantage for employers. They widen the talent pool, strengthen retention and support productivity.

Dementia Singapore, a leading social service agency, knows this well. It has fully integrated FWAs such as staggered working hours into their workplace culture. For example, all employees can select their preferred working hours, allowing working parents to start and end work earlier to pick up their children. This has led to high levels of staff satisfaction and a low attrition rate.

But conversation about FWAs can be difficult. That is why we launched the Tripartite Guidelines on Flexible Work Arrangement Requests in 2024. The guidelines replace uncertainty with clarity, guiding structured conversations on requests for FWAs.

Let me illustrate how Dementia Singapore has used those guidelines. A cancer survivor in her late 50s required a reduced workload arrangement, or flexi-load, to manage her health. She submitted a formal FWA request in line with the Tripartite Guidelines. Dementia Singapore then considered it by weighing its operational requirements. Her work responsibilities were reviewed and redeployed in consultation with other teammates. Her request was approved and she is now on a three-day work week.

If employers do not consider requests in line with the guidelines, workers can seek assistance from TAFEP. TAFEP will engage the employer to align its processes. This could include requiring the employer to attend educational workshops on FWA implementation.

Ms Eileen Chong proposed making Tripartite Guidelines into law and making provisions of FWAs a presumptive right for working parents with young children. These moves are a little blunt as businesses differ across industries and roles. For instance, working from home is not possible for frontline jobs. Rigidly mandating FWAs across the board can stifle business operations and competitiveness. In the long run, this could hurt employment opportunities for Singaporeans. Instead, we have focused on more sustainable ways to enable companies to implement FWAs through initiatives such as job redesign support and providing a fair process for employers and workers to discuss mutually workable and beneficial arrangements.

Ms Diana Pang spoke about the challenges SMEs face when implementing FWAs. I wish to assure the Member that support is available. Firms, including SMEs, can utilise the Enterprise Workforce Transformation Package (EWTP), set to launch later in March. The EWTP provides funding and advisory support to help companies adopt new work models like FWAs.

We are also looking to enhance support for flexi-load arrangements. Flexi-load arrangements like part-time work, job sharing and fractional roles may be suitable for caregivers who need work at a reduced load to fulfil their caregiving duties. However, in 2024, less than half of employees who required the part-time work arrangements were provided with it compared to over 70% of employees who were provided with time-related FWAs like staggered work hour arrangements and location-related FWAs such as scheduled tele-working.

Today, we have the Part-Time Re-employment Grant which provides up to $125,000 to employers who offer part-time employment, FWAs and structured career planning to our senior workers.

Ms Mariam Jaafar asked about grant uptake and outcomes, and strengthening incentives to employers. Employers have responded positively to the grant. More than 7,600 have taken it up, benefitting more than 66,000 senior workers. As Senior Minister of State Koh has mentioned, we are extending the grant to end-2027 to continue supporting employers.

Given the grant's success, we are reviewing how we can enhance it to keep employers providing flexi-load jobs to more workers. This could potentially benefit other segments of workers who rely on flexi-load jobs such as caregivers.

Moving on to persons with disabilities. They too benefit from inclusive workplace practices. Imagine Daniel, a wheelchair user, applying for a job. He has the skills and qualifications. But some employers hesitate, unsure of his capabilities or concerned about additional costs. This is where the Enabling Employment Credit (EEC), comes in. The EEC helps employers take that first step by covering up to 20% of Daniel's wages, easing cost concerns.

The results of our efforts have been encouraging. In 2025, 6,800 employers received the EEC for hiring 10,800 Singapore residents with disabilities, up from 6,600 and 10,000 in 2022. To sustain this momentum, we extended the EEC last year to run until end of 2028.

At the same time, Daniel needs support of his own. While the EEC may help employers overcome hesitation, the Open Door Programme supports both the employer and Daniel as he navigates the job search and workplace. Through the programme, Daniel is matched with a suitable role. He also receives ongoing support to help him settle into work, such as personalised job coaching at his workplace. And if Daniel needs workplace modifications, like a wheelchair ramp to move up to office, the programme also covers up to 90% of that cost.

The programme has delivered strong results. It has supported over 2,400 persons with disabilities into employment in the past four years. More than 80% remain employed for at least six months. This shows that with the right support, persons with disabilities are not just employable, they are valuable, long-term contributors to their employers.

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But work is both about earning today’s income, and long-term financial security. While employment helps Daniel through regular contributions to his CPF, additional support can go a long way in easing his financial worries. That is why, starting this January, we expanded the Matched Retirement Savings Scheme to include eligible Singaporeans with disabilities of all ages. With this expansion, around 24,000 Singaporeans with disabilities below the age of 55 can benefit from the scheme this year.

But inclusive workplaces cannot be built on incentives alone. They require clear norms and practical guidance. That is why MOM is working with tripartite partners and social service agencies on a new Tripartite Advisory on Reasonable Accommodations. The Advisory will provide practical guidance on how reasonable accommodation can be implemented at the workplace. This gives employers clarity, and, for workers, confidence to raise accommodation needs early.

Nevertheless, workplace demands are evolving, and many families wonder if their loved ones with disabilities can adapt. That is why last December, Prime Minister Lawrence Wong announced the formation of the Taskforce on Assurance for Families with Persons with Disabilities, chaired by Minister of State for Social and Family Development Goh Pei Ming, and supported by myself and colleagues from the Ministries of Education and Health.

MOM will work closely with MSF to examine how to better support persons with disabilities in our changing job market: through upskilling, reskilling, expanding opportunities, strengthening employer support, and building career resilience.

Mr Chairman, let me recap in Mandarin.

(In Mandarin): As the saying goes, “The sea embraces all rivers. It is great because it is inclusive.” In this rapidly changing era, the Government's goal is very clear. We want to help every employee continuously improve and move towards success. We firmly believe that an inclusive workplace environment will benefit all Singaporeans. Employees can better utilise their strengths and companies can also recruit more outstanding talent. MOM will continue to spare no effort in strengthening Singapore's labour market.

Although we have already achieved some results in promoting workplace inclusivity, we understand that some Singaporeans still face challenges when seeking employment.

Moving forward, MOM will further improve systems to create more employment opportunities for them. We will approach this from three aspects. First, raising industry standards. MOM will work through close tripartite cooperation to set higher standards and encourage more inclusive workplaces. Second, promoting flexible work arrangements. Allowing women and employees who need to care for their families to better balance career and family responsibilities. Three, supporting employment for persons with disabilities. MOM will actively guide employers, address their concerns and help persons with disabilities find good and suitable jobs where they can utilise their strengths.

These measures are not only practical but also complement each other to create a conducive work environment for all Singaporeans. Let us work together so that every Singaporean can contribute and share the joys of success.

(In English): Mr Chairman, let me now close in Malay.

(In Malay): MOM's ambition is clear – we want to enable workers to thrive, regardless of their background or circumstances. We want to create inclusive workplaces that allow workers to achieve their career aspirations and participate meaningfully in the workforce.

We must do this together. Employers must build a culture where every —

The Chairman: I am sorry, time is up. Guillotine time is 7.00 pm, so we only have about 25 minutes before we have to end this Head. Clarifications, keep them short as usual. Mr Saktiandi Supaat.

Mr Saktiandi Supaat: Thank you, Mr Chairman, for seeing my hand. Mr Chairman, I got three clarifications. One is with regard to Minister Tan's speech earlier about GRIT and OMIP. If Minister can actually share a bit more about the reception of GRIT from graduates thus far, I think Minister mentioned that there is room to expand the scheme in view of the increased uncertainty over the new tariffs and geopolitical tensions. Can Minister share a bit more about that? We already have 400 GRIT capacity. Whether there can be more that we can, or what is your view in terms of expanding beyond that 400?

The second one is I am happy to hear just now about the overseas market immersion programme. It is very important as Singapore tries to internationalise. Can Minister share a bit more about how much more we can do to create spaces for OMIP?

Second question is with regard to my question on the skilled trades. I hear Minister mentioned just now about the sectoral move to create the electronic or electrical trade framework. In my cut, I suggested to do a national master trade accreditation framework. Why not do that? Why not do that national rather than a specific sectoral, because I think we may be too slow if we do on a sectoral basis. I do not know, maybe can hear from Minister his view on that, given that the medium- to long-term manpower projections for critical skilled trades might be in need.

The last question I have is in terms of the Investment Cycle scheme. I asked a question in my cut, whether the scheme will allow for flexibility in selecting target retirement dates as we extend working lives, and members may retire later than age 65. Whether there is some flexibility in terms of that?

Dr Tan See Leng: To his first question, for GRIT, we have originally, as of the outset, sized up about 800 of them, so the majority will be at GRIT; and then there is a smaller quantity, number of places at GRIT@Gov.

We have as of the outset about 4,000-plus applications, but I do not have the exact numbers with me, but the vast majority of them actually found jobs while they were applying for GRIT, because they contemporaneously also apply for jobs. And we are happy for that, because the whole objective of GRIT was to place them into permanent jobs. Having said that, today, 400 have come on board. There are still quite a substantive number out there that are undergoing on board clearance, including some security checks as well. What we are heartened to see is that by the end of January and into February, like I said, the majority of the original GRIT applicants have actually found jobs. [Please refer to ​"Clarification by Minister for Manpower", Official Report, 3 March 2026, Vol 96, Issue 23, Correction By Written Statement section.]

But having said that, we continue to maintain the scheme. We will extend it to include the 2026 cohort as well. And given the uncertainty that just, the tensions that just came up — actually, the war that just came up over the weekend, we will not sunset the scheme. We will continue to hold it and, depending on the requirements, we may expand it if necessary.

For OMIP, we are also very heartened by the response. What we are now doing is to expand it to more companies, to even potentially to younger employees as well who join companies. The most important thing that we require the companies who participate in the OMIP programme, the funding is actually quite generous, it is up to 70%, it is for them to actually have a clear business plan. There must also be a very clear career path. What are the roles that they are going to transition post that overseas attachment? With that, with our programme partner and WSG dispersing the grant itself, we hope to be able to reach out to a larger swathe of the young population.

On the last one, the CPF Investment Scheme, and then maybe the Member could tell me what was the second one. The investment scheme is meant to provide a longer-term horizon for younger CPF members at the point of either starting or maybe very early on in their careers when they have a runway. What we have taken, with getting consultation with many of the investments consultants and advisors is that, we wanted to set it such that that lifecycle product allows for first, an automatic rebalancing without the member having to actively manage the portfolio with age; and the second part is obviously once they reach a certain age, then there would be a liquidation, a phased liquidation.

As far as what is that time horizon and whether we can extend it, today, we are just about to talk to the different providers. When we get more information, and once the scheme runs over the course, not the entire course at this time, once we have got the experience in working with some of these providers, we would be able to continue to refine and tweak the scheme further.

I mean, having said that, even at our payout eligibility age of 65 today, we find that quite a number of our CPF members have opted to get the payout at 70 and, in fact, many of the members have asked us, can we extend beyond 70? So, ostensibly we understand, we take all this feedback into consideration. We are all living longer, hopefully healthier and, these are the considerations that we will constantly take back and review.

What was the second? The national masters trade. We wanted to start with three sectors, because obviously there are multiple sectors all over. So, the first one we work with was the electrical trade. Part of the reason is that, I am very familiar with the electrical trade, because I happen to also cover energy in MTI. Our licensed electrical workers (LEWs), they are also rapidly ageing. In fact, if I am not mistaken, the median age of our LEWs is about 60, 60 something.

So, I think for our own resilience, for our own security and our own reliability, we have to train this group of people. And earlier on I mentioned Jia Xing, I think he has done very well. So, we want to start that on a very firm footing.

The other two trades that we have identified is plumber, and then the third one is aircon technicians. These are all very important, key. And I think the Member knows the size of our population. If we want to try to spread it too thin, then obviously how to differentiate according to the importance and so on, I think that impact would be a lot more less impactful compared to being very focused on these three. So, we are starting off with these three first. [Please refer to ​"Clarification by Minister for Manpower", Official Report, 03 March 2026, Vol 96, Issue 23, Correction By Written Statement section.]

The Chairman: Assoc Prof Jamus Lim. You had two cuts for eight minutes.

Assoc Prof Jamus Jerome Lim: Chair, if I heard Minister Tan correctly, he indicated the Government generally subscribes to the principles of on job training through a traineeship programme, such as GRIT. May I confirm if this means that the Government will indeed be looking not just to expand the depth of the programme in terms of numbers, but to also go beyond STEM and finance in terms of field coverage for all graduates from our ITEs, polys and AUs. And if so, does he anticipate that there will be a clear timeline for this expansion? And finally, in terms of GRIT, will this henceforth be administered under the new SSG, WSG Statutory Board?

Dr Tan See Leng: Let me clarify to Assoc Prof Lim. We, at this current moment, do not intend for it to be a national institutionalised programme for OJT, because we think that, given the current employment situation, at least up to last year, or even up to January, there are still more job vacancies than there are job seekers. A big part of it, of course, is the expectations may not match the type of jobs that are available in the market today. So what we are considering is, for GRIT itself, is for a group of graduates who may need that additional internships.

But having said that, there are many graduates who have already arranged their own industrial attachment and internships while they are in flight, whether it is through ITE, Polytechnics or in the IHLs itself. So, we do not have plans to develop this into a national programme. But suffice to say, today, we already have a whole series of all these programmes available, GRIT, OMIP and these are for junior level ones. Beyond that, even at the mid-career, we have also got different types of attachment programmes, so let me set that record straight.

A large part of these programs will be administered by the newly formed Workforce and Skills Singapore (WSSG) indeed. When it comes to finance sectors and so on, I believe that WSSG would have to work with MAS with the Institute of Banking and Finance Singapore (IBF) and maybe other specialised institutions, to get traction and to make sure that our reach and our impact is optimised and maximised for our locals.

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I think we all want the same thing for our people. We want to ensure that we deliver the best outcomes for them. We cannot deliver equal outcomes for everyone, but we want to deliver the best outcomes for them. I think the fundamental difference is that, today, we want to see a more differentiated, a more targeted and a more surgical approach towards each sector, rather than a blanket nationalised programme.

The Chairman: Ms Jessica Tan.

Ms Jessica Tan Soon Neo: Thank you, Mr Chairman. I would like to ask the Senior Minister of State, with regard to the mid-career renewal and the various programs that he has talked about. Would MOM consider expanding a CTC-style support, specifically for mid-career PMEs, who face possible disruptions and to enable employers also to redesign the roles and redeploy staff more proactively, because the CTC support could act like a enterprise-wide thing to allow for the health diagnostics, career health diagnostics, then the co-funding of the renewal and then the multi-stage career planning. So, I would like to ask if that would be possible?

The other is in terms of planning ahead and integrating a multi-stage career, would MOM explore sector-specific adaptations of the multi-stage career pathways particularly for sectors that are actually facing disruptions, for example, structural shifts, manufacturing, professional services and ICT?

And finally, on caregivers, there has been a lot of discussion about giving caregiver support, for employers to do that. But for those who have already been disrupted and are trying to enter the workforce, what additional support could be given to them, to help them reenter the workforce?

Dr Koh Poh Koon: Sir, on the Member's first question about whether we will consider a CTC-style support. The answer is yes, because the CTC structure and the format is really a means to an end. So, if there are companies today, even before we start with the Career Longevity Centre, for example – even today, any company that is keen to do a more systematic transformation of their workplace in the business model, together with bringing workers along, can already approach NTUC, where there is a team of dedicated industry training officers that can guide a company through a OpsTech road mapping process and then chart out the road map for them to do a CTC-style transformation. That can affect the whole entire company's workforce, not just for the mid-careerists.

The second question on whether there will be sector-specific multi-stage pathways. That is one area of thinking we are looking at as well, because as I said in my speech, there is no one-size-fits-all model that will work for all companies or for all sectors, right? So, in order to have a little bit more of a targeted, tailored-made kind of a pathway for companies, we think that the AfA concept of what we are doing by having companies from different sectors actually piloting some of the ways in which they actually help to transform into a multi-generational workplace. They could then start to share their learnings with fellow companies in the same sector. So, that is one approach that we can take.

How we can actually then enlarge this, could be through the various TACs or even through the Career Longevity Centre, where employers themselves can conduct conversations and workshops, share their own experience, so that SMEs and companies of different sizes can learn together, have a community of practice and that then takes away some of the fears of even embarking on this transformation of the workplace, by the companies. So, that concept is exactly what we are thinking of. How we operationalise it, is something that is still in discussion and we are open to ideas.

The third one on how we can help caregivers. If we can get our career and employment support ecosystem, as Minister and myself had articulated, up to speed, crowding in a lot more of the private sector players in this space as well, some of the resources that we put forth, not just for the senior workers, can also be useful to those caregivers who have left the workforce for some time, who needed maybe a bit more of a skills uplift. So, the concept of the Career Longevity Centre or the combination of WSG and SSG coming together can do, is indeed in that direction, to put a one-stop kind of service for those who may need not just upskilling, but also have a bit more planning on how they can re-enter the workforce, and eventually find a better way to manage their entry into the workforce, perhaps even consider a case management-type of approach.

In other words, the caregiver who may have been out of the workforce for some time, you cannot just leave the person alone to just, "Oh, here is a job, and good luck to you. It is between you and your employer."

Maybe a case management approach to check in on the person, to just find out how you are doing after the first few months, to just make sure you handhold not just the individual, but maybe work with the HR in the company to understand how the HR for the company can better support this person who may need a lot more guidance, being away from the workforce for some time. So, these are ideas we are all exploring right now.

The Chairman: Mr Patrick Tay, for your five cuts, totalling seven minutes.

Mr Patrick Tay Teck Guan: Firstly, on mandatory retrenchment notification (MRN), and secondly, on the OnePass.

Firstly, for the MRN. Even as early as last month, I had another company that informed of a retrenchment exercise a day before. I think we were scrambling trying to help the workers, so I urge MOM to really relook at MRN to MOM specifically, prior to the retrenchment exercise, so that we can act on it. And for those who breach MRN requirements, not just a slap on the wrist, but more enhanced penalties and not just merely administrative penalties.

Second clarification is on the new OnePass (AI and Tech) track. How does it differ from the current TechPass, and who are we really hoping to attract?

The Chairman: Who is taking this? Minister Tan.

Dr Tan See Leng: Mr Chairman, I will take both in the interest of time. The short answer to the MRN advance notice, as we are undertaking the review of the Employment Act and we will look at all that comprehensively, so rest assured.

On the second part, with regard to the OnePass. The construct of the OnePass is meant to bring the movers and shakers, the rainmakers, the network brokers, here. We believe that the three most valuable traits that we have collectively is our one people, the trust that we have built over the years and the credibility that we have as a hub. And, of course, today, in the uncertain world that we live in, the safety, the predictability, the transparency and the frameworks that we have here, and the type of robust debates, the constructive debates that we were able to have here, in the House, all put us in a very good position to attract global talent to be here.

And with that, they can spawn multiple enterprises. They can uplift the calibre of all, by transferring cutting-edge technology, thought processes and so on to our locals. Then I think we would have arrived and achieved our end objective.

The Chairman: Ms Yeo Wan Ling, you had four cuts, totaling 10 minutes.

Ms Yeo Wan Ling: My clarification is for Minister. In the Labour Movement, I have seen first-hand how PWM brings dignity, structured progressions into our workers lives when previously there was none.

In this House today, I heard differing views questioning the relevance and efficacy of our PWCS and, thereby, impacting the PWM productivity and upskilling intents. When something has demonstrably improved livelihoods for thousands of Singaporeans is portrayed as burdensome or ineffective, it risks eroding confidence in policies that have made actual differences on the ground. There has been a diversity of views expressed today, including specific suggestions to policies, how will the Government take all of these on board?

Dr Tan See Leng: I recognise and I respect the diversity of the views that have been expressed, not just today, but I think in many of our sessions, and there are also many different views, huge dichotomy and also many tensions between the views that has been expressed. For example, some would want AI to move faster and then others urge more caution. We have even had Mr Gerald Giam and Assoc Prof Ho, who called for rapid AI democratisation, put AI skills into every workers' hands, as quickly as possible.

On the other hand, Mr Pritam Singh cautioned against unfettered expansion, urge for tighter guardrails, stronger regulation; and Ms Yeo Wan Ling, Dr Wan Rizal, Ms Mariam Jaafar have similarly echoed views to ensure that AI adoption actually translates into real wage growth and not jobless growth. Then, we have got other examples where some want to raise productivity skills and wages in the domestic sectors, while others ask to support lower productivity sectors with easier access to foreign workers.

Ms Yeo Wan Ling spoke about the limits as to how much we can expand our foreign workforce, and yet, Mr Gerald Giam warns of the dangers of a dual-speed economy. However, at the same time, with some Members, for instance, like Assoc Prof Jamus Lim and Mr Mark Lee, have called for more leeway for domestic-oriented sectors, including F&B and retail, to access foreign workers, to help our SMEs cope with cost pressures.

Members of the House, Mr Chairman, these are examples that reflect the fundamental trade-offs that we must all square off. As with all policy decisions, we strike a very careful and a very delicate balance between all of these competing priorities. As the Government of the day, we are entrusted with the responsibility to navigate these complex issues. We have to reconcile all of these tensions into coherent, fiscally sustainable and forward-looking and practical policies for all of our fellow Singaporeans.

So, we consult widely. We consult widely with workers, with employers, with unions, with industry partners and we try as much as possible, to ensure that the voices and the concerns are heard. We have this singular objective. We want to empower Singaporeans through all stages of life, and we want to ensure that they are equipped to succeed in this changed world.

We also have to contemporaneously ensure that our businesses continue to thrive in this transformed landscape, so that we can continue to foster an environment where innovation, where opportunity continues to be accessible to all.

So, we balance all these priorities. Sometimes, certain, very expedient and clear pathways may seem so intuitive. Why is it that we are not able to do it? It is because whatever policy that we come up with, we implement, it will trigger a cascade of ramifying effects, much further, laterally and down the line. And hence, we walk on a very tight rope and we hope that with your support, with that focus on singularly building a better future for all of our Singaporeans and our future generations that will come after us, we will continue to work hard to build a Singapore that is prosperous, that is full of optimism and resilient and safe for all, so I thank the Member for her understanding.

Mr Chairman: I am sorry. We have reached the guillotine time. So, can I invite Ms Yeo Wan Ling, if you would like to withdraw the amendment?

6.58 pm

Ms Yeo Wan Ling: Thank you to all who were involved in this very robust and rich discussion. Chairman, with that, I seek leave to withdraw my amendment.

Amendment, by leave, withdrawn.

The sum of $3,920,999,400 for Head S ordered to stand part of the Main Estimates.

The sum of $178,690,100 for Head S ordered to stand part of the Development Estimates.